Question: I need only answer for question 5 only Borges Machine Shop, Inc., has a 1-year contract for the production of 200,000 gear housing for a

I need only answer for question 5 only
Borges Machine Shop, Inc., has a 1-year contract for the production of 200,000 gear housing for a new off-road vehicle. Owner Luis Borges hopes the contract will be extended and the volume increase next year. Borges has developed costs for three alternatives - these are general-purpose equipment (GPE), flexible manufacturing system (FMS) and expensive but efficient dedicated machine DM. The costs are as follows: GPE FMS DM ANNUAL CONTRACTED UNITS TO BE PRODUCED 200,000 200,000 200,000 ANNUAL FIXED COSTS $100,000 $200.000 $500,000 PER UNIT VARIABLE COSTS $15.00 $14.00 $13.00 NOTICE: Units remain the same but fixed costs increase with the cost of the equipment but per unit costs decrease due to the increased efficiency of the equipment As the consultant, you need to Determine the most economical volume CPROCES TOTECTOR COM ports Determine which process to select for the contract identified above (200,000 un cach of the road 1. 75,00 2.275.000 3.375,000 4. If a contract for the second and third years is pending, what the implications for process selection? 5. Prepare a GRAPH showing the FIXED COSTS, TOTAL COSTS (VARIABLE COSTS X QUANTITIES), and CROSSOVER POINTS for each process and each volume K Borges Machine Shop, Inc., has a 1-year contract for the production of 200,000 gear housing for a new off-road vehicle. Owner Luis Borges hopes the contract will be extended and the volume increase next year. Borges has developed costs for three alternatives - these are general-purpose equipment (GPE), flexible manufacturing system (FMS) and expensive but efficient dedicated machine DM. The costs are as follows: GPE FMS DM ANNUAL CONTRACTED UNITS TO BE PRODUCED 200,000 200,000 200,000 ANNUAL FIXED COSTS $100,000 $200.000 $500,000 PER UNIT VARIABLE COSTS $15.00 $14.00 $13.00 NOTICE: Units remain the same but fixed costs increase with the cost of the equipment but per unit costs decrease due to the increased efficiency of the equipment As the consultant, you need to Determine the most economical volume CPROCES TOTECTOR COM ports Determine which process to select for the contract identified above (200,000 un cach of the road 1. 75,00 2.275.000 3.375,000 4. If a contract for the second and third years is pending, what the implications for process selection? 5. Prepare a GRAPH showing the FIXED COSTS, TOTAL COSTS (VARIABLE COSTS X QUANTITIES), and CROSSOVER POINTS for each process and each volume KStep by Step Solution
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