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
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)

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