Question: Molle Machine Shop, Inc, has a 1 year contract for the production of 200.000 gear housing for a new off-road vehicle. Owner Larry Melle hopes

Molle Machine Shop, Inc, has a 1 year contract for the production of 200.000 gear housing for a new off-road vehicle. Owner Larry Melle hopes the contract will be extended and the volume increased next year. Maile has developed costs for three alternatives. They are general purpose equipment (GPE), flexible manufacturing system (EMS), and expensive, but officient dedicafed machine (OM). The cost data follow General Purpose Flexible Manufacturing Dedicated Equipment (GPE) System (FMS) Machine (DM) Annual contracted units 200,000 200.000 200.000 Annual fixed cost $100,000 $225,000 $480,000 Per unit variable cost $16.00 $1475 $13 50 The option GPE is best when the contracted volume is below 100000 units (enter your response as a whole number The option FMS is best when the contracted volume is between and units (enter your responses a whole numbers)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

Flowmaster Forge Inc. is a designer and manufacturer of industrial air-handling equipment that is a wholly owned subsidiary of Howden Industrial Inc. Howden is interested in selling Flowmaster to an...

Alans Machine shop, Inc has a 1 year contract for the production of 200,000 gear housing for a new off road vehicle. Owner Matt Martin hopes the contract will be extended and the volume increased...

Molle Machine Shop Inc. has a 1 year contract for the production of 200,000 gear honing for a new off road vehicle Owner Lawy Mebelopen the card will be extended and the most pas developed costs for...

Borges Machine Shop inc. has a 1 year contract for the production of 2 0 0 0 0 0 gear housing for a new off road vehicle. Owner luis borges hopes the contract will be extended and the volume...

Question Help Borges Machine Shop, Inc. has a 1 year contract for the production of 200,000 gear housing for a new off road vehicht Ownee Luis Borges hopes the contract will be extended and the...

kindly reply! its urgent! Meile Machine Shop, Inc., has a 1 year contract for the production of 200,000 gear housings for a new off-road vehicle Owner Larry Meile hopes the contract will be extended...

kindly reply! its urgent! 3 Homework: Chapter 7 Question 4, Problem 7.6 (book/static) Part 3 of 3 HW Score: 25.93%, 7 of 27 points Points: 1 of 4 Save Meile Machine Shop, Inc. has a 1 year contract...

the option DM is best when contracted volume is over ______ units? Meile Machine Shop, Inc, has a 1 year contract for the production of 200,000 gear housings for a new off-road vehicle. Owner Larry...

Borges Machine Shop, Inc. has a 1 year contract for the production of 200,000 gear housings for a new offroad vehicle. Owner Luis Borges hopes the contract will be extended and the volume increased...

On March 20, Batavia's petty cash fund of $100 is replenished when the fund contains $9 in cash and receipts for postage $52, freight-out $26, and travel expense $10. Prepare the journal entry to...

Examine the following pericyclic reactions. For each reaction, indicate whether it is an electrocyclic reaction, a cycloaddition reaction, or a sigmatropic rearrangement. a. H CH3 b. OCH3 CH2 CHOCH3...

Which of the following statements about convertibles is most CORRECT? Group of answer choices The expected return on a convertible bond must normally be between the expected return on the firm's...

Case Greenbuilders Pte Lid ("GPL") is a local construction company which specialises in providing bespoke Design and Build construction services for private residential homes that are designed to be...