Question: Homework: Homework: Chapters 7 and S7 Question 1, Problem 7.3 Part 1 of 3 HW Score: 0%, 0 of 8 points O Points: 0 of

Homework: Homework: Chapters 7 and S7 Question 1, Problem 7.3 Part 1 of 3 HW Score: 0%, 0 of 8 points O Points: 0 of 1 Save 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 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 Annual fixed cost 75,000 75,000 75,000 $200,000 $480,000 Per unit variable cost $125,000 $18.00 $14.00 $13.50 Based on the total cost, the process that is best suited for the current contracted volume is Help me solve this Video Get more help. Final check Clear all

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