Question: need quickly, will like!!! Alan's Machine Shop, Inc. has a 1 year contract for the production of 200,000 gear housings for a new off road
Alan's Machine Shop, Inc. has a 1 year contract for the production of 200,000 gear housings for a new off road vehicle. Owner Matthew Martin hopes the contract will be extended and the volume increased next year Me Martin has developed costs for three altomatives. They are general purpose equipment (GPE), flexblo manufacturing system (FMS), and expensive but efficient, dedicated machine (DM). The cost data follow 10 points Save Arron Annual contracted units Annualued cost Por unit variable cost General Purpose Equipment (GPE) 200,000 $100,000 $15.50 Flexible Manufacturing System (FMS) 200,000 $200 000 $1400 Dedicated Machine (DM) 200.000 $450,000 $12.00 a (6 points) Solve for the crossover points Show all work (4 points) The option GPE is best when the contracted volume is below units (erster your response as a whole number) tants The option FMS is best when the contracted volume is between and units The option DM is best when the contracted volume is over units
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
