MGMT $3370$ Online Spring $2024(1)$

Homework: HW $-$ Ch$7$

Question $1,$ Problem $7\mathrm{.}2$

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Do Homework $-$ HW $-Ch7$

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Cindy Yan

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Borges Machine Shop, Inc., has a $1-$year contract for the production of $250,000$ 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:

$\backslash$table$[[,\backslash$table$[[$General$-$Purpose$],[$Equipment $($GPE$)]],\backslash$table$[[$Flexible Manufacturing$],[$System $($FMS$)]],\backslash$table$[[$Dedicated$],[$Machine $($DM$)]]],[$Annual contracted units,$250,000,250,000,250,000],[$Annual fixed cost,$$125,000,$$$250,000,$$$480,000$