Question: Can you help me with this question please? Borges Machine Shop, Inc. has a 1-year contract for the production of 200,000 gear housings for a
Can you help me with this question please?
Borges Machine Shop, Inc. has a 1-year contract for the production of 200,000 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: GPE FMS DM Annual contracted units 200.000 200,000 200,000 Annual fixed cost $100.000 $200,000 $500.000 Per unit variable cost $15 $14 $13 sta se a) Which plocess is best for this contract? Mes ext.de b) The most economical volume for GPE is from 0 to between for FMS is between and and for DM is above 20 099 4 FM # A * $ 4 ore + 3 & 7 6 8 9 0 E R T Y U O a P. D F G H L Annual fixed cost $100,000 $200,000 $500,000 Per unit variable cost $15 $14 $13 a) Which process is best for this contract? b) The most economical volume for GPE is from 0 to between for FMS is between and and for DM is above ata c) Determine what is the best process for each of the following volumes? 75,0000 --> 375.000 Mesa ext.doc DOO 11 18 3 To $ 4 . % 5 a> & 7 Oo * Il + 9 0 R T T Y U O P li

Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
