Question: Borges Machine Shop, Inc. has a 1-year contract for the production of 225,000 gear housings for a new off-road vehicle Owner Luis Borges hopes the

Borges Machine Shop, Inc. has a 1-year contract for the production of 225,000 gear housings for a new off-road vehicle Owner Luis Borges hopes the contract will be extended and the volume increased next year Borges has developed costs for three alternatives. They are general-purpose equipment (GPE), flexible manufacturing system (FMS) and expensive, but efficient, dedicated machine (DM). The cost data follow Annual contracted units Annual foced cost Per unit Variable cost General Purpose Equipment (GPE) 225,000 $150,000 $15.00 Flexible Manufacturing System (FMS) 225.000 $225,000 $14.75 Dedicated Machine (DM) 225 000 5480,000 513.00 Based on the cost the process that is best suited for the current contracted volume is GPE FMS OM

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

Suppose there are two islands. The total population on the two islands is 500 people. The initial stock of fiat money is $500. The money stock increases according to M t = 1.1M t-1 . The probability...

Borges Machine? Shop, Inc., has a? 1-year contract for the production of gear housings for a new? off-road vehicle. Owner Luis Borges hopes the contract will be extended and the volume increased

Dedicated Borges Machine Shop, Inc has a 1-year contract for the production of 225, 000 gear housings for a new off-road vehicle Owner Luis Borges hopes the contract will be extended and the volume...

Borges Machine Shop, Inc has a 1-year contract for the production of 75 000 gear housings for a new off-road vehicle Owner Luis Borges hopes the contract will be extended and the volume increased...

Borges Machine Shop, Inc., has a 1 - year contract for the production of 7 5 , 0 0 0 gear housings for a new off - road vehicle. Owner Luis Borges hopes the contract will be extended and the volume...

Borges Machine? Shop, Inc., has a? 1-year contract for the production of gear housings for a new? off-road vehicle. Owner Luis Borges hopes the contract will be extended and the volume increased

5 of 8 Borges Machine Shop, Inc. has a 1-year contract for the production of 250 000 gear housings for a new off-road vehicle. Oaner Luis Borges hopes the contract will be entended and the volume...

kindly answer as soon as possible! urgently needed! Meile Machine Shop, Inc, has a 1-year contract for the production of 225 000 gear housings for a new off-road vehicle Owner Larry Meile hopes the...

Borges Machine Shop, Inc., has a 1-year contract for the production of gear housings for a new off-road vehicle. Owner Luis Borges hopes the contract will be extended and the volume increased next...

QUESTION 1 7.1: Borges Machine Shop, INC., has a 1-year contract for the production of 200,000 gear housings for. New off-road vehicle. Owner Luis hopes the contract will be extended and the volume...

Consider the finite-length sequence x[n] in Figure. The five-point DFT of x[n] is denoted by x[k]. Plot the sequence y[n] whose DFT is 3. -1

McWherter Instruments sold $550 million of 10% bonds, dated January 1, on January 1, 2018. The bonds mature on December 31, 2037 (20 years). For bonds of similar risk and maturity, the market yield...

How are analytical measures of plant age used in the analysis of financial statements? Analytical measures of plant age can be used to estimate when mandatory replacement of equipment will take place...

What is an example of constructive feedback? provide reference