Borges Machine Shop, toc has a 1-year contract for the production of 75,000 gear housings for...

 

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Borges Machine Shop, toc 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 encreased ned year Borges has developed costs for three alternatives. They are general-purpose equipment (OPE), flexible manufacturing system (FMS), and expensive, but officient, dedicated machine (DM) The cost data follow General-Purpose Equipment (GPE) 75,000 $150.000 $18.00 Flexible Manufacturing System (FMS) 75,000 $250,000 $14.50 Dedicated Machine (DM) 75.000 $500,000 $13.00 Annual contracted units Annual faxed cost Per unit variable cost Based on the total cost, the process that is best suited for the current contracted volume is Suppose the contracted volume changes to 275,000 gear housings Based on the total cost, the process that is best suited for the new volume is Suppose the contracted volume changes to 375,000 gear housings. Based on the total cost, the process that is best suited for the new volume is Borges Machine Shop, toc 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 encreased ned year Borges has developed costs for three alternatives. They are general-purpose equipment (OPE), flexible manufacturing system (FMS), and expensive, but officient, dedicated machine (DM) The cost data follow General-Purpose Equipment (GPE) 75,000 $150.000 $18.00 Flexible Manufacturing System (FMS) 75,000 $250,000 $14.50 Dedicated Machine (DM) 75.000 $500,000 $13.00 Annual contracted units Annual faxed cost Per unit variable cost Based on the total cost, the process that is best suited for the current contracted volume is Suppose the contracted volume changes to 275,000 gear housings Based on the total cost, the process that is best suited for the new volume is Suppose the contracted volume changes to 375,000 gear housings. Based on the total cost, the process that is best suited for the new volume is

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To determine which process is best suited for the different contracted volumes we need to calculate ... View the full answer