Question: = Homework: Chapter 7 Homework < Question 2 , Problem 7 . 2 Part 1 of 3 > HW Score: 0 % , 0 of

= Homework: Chapter 7 Homework < Question 2, Problem 7.2 Part 1 of 3> HW Score: 0%,0 of 10 points O Points: 0 of 4 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 ex volume increased next year. Borges has developed costs for three alternatives. They are general-purpose equipment (GPE), flexible manufacturing system (FMS), and ex efficient, dedicated machine (DM). The cost data follow: Annual contracted units Annual fixed cost Per unit variable cost General-Purpose Equipment (GPE)200,000 $125,000 $18.00 Flexible Manufacturing System (FMS)200,000 $250,000 $14.00 Dedicated Machine (DM)200,000 $525,000 $13.00 The option GPE is best when the contracted volume is below units (enter your response as a whole number).

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