for three alternatives. They are general$-$purpose equipment $($GPE$),$ flexible manufacturing system $($FMS$),$ and expensive, but efficient, dedicated machine $($DM$).$ The cost data follow:

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

DM

FMS

GPEBorges Machine$$ Shop, Inc., has a$1-$year contract for the production of $75$ comma $000$ gear housings for a new$$ 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:

$$

$$General$-$Purpose Equipment$($GPE$)$

Flexible Manufacturing System$($FMS$)$

Dedicated Machine$($DM$)$

Annual contracted units

$75$ comma $000$

$75$ comma $000$

$75$ comma $000$

Annual fixed cost

$ $100$ comma $000$

$ $200$ comma $000$

$ $480$ comma $000$

Per unit variable cost

$ $16\mathrm{.}00$

$ $14\mathrm{.}00$

$ $13\mathrm{.}75$

Part $2$

Based on the total$$ cost$,$ the process that is best suited for the current contracted volume is

$$

DM

FMS

GPE

$.$

Part $3$

Suppose the contracted volume changes to $275$ comma $000$ gear housings. Based on the total$$ cost$,$ the process that is best suited for the new volume is

$$

DM

FMS

GPE

$.$

Part $4$

Suppose the contracted volume changes to $375$ comma $000$ gear housings. Based on the total$$ cost$,$ the process that is best suited for the new volume is

$$

DM

FMS

GPE

$.$