Question: Meile Machine Shop, Inc., has a one - year contract for the production of , 1 5 0 0 0 0 gear housings for a

Meile Machine Shop, Inc., has a one-year contract for the
production of ,150000 gear housings for a new
off-road vehicle. Owner Larry Meile hpoes the contract will
be extended and the volume increased next year. Meile 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:
(If the total cost is $2,100,000 put 2100000 in the answer)
Which process is best for this contract?
(Put GPE, FMS or DM in the answer)
GPE
FMS
DM
 Meile Machine Shop, Inc., has a one-year contract for the production

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