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 Mr Martin has developed costs for three alternatives. They are general purpose equipment (GPE), flexible manufacturing system (FMS), and expensive but officient dedicated machine (DM). The cost data follow Annual contracted units General Purpose Equipment (GPE) 200.000 $100,000 $15 50 Annual fixed cost Flexible Manufacturing System (FMS) 200,000 $200,000 $1400 Dedicated Machine (DM) 200,000 $450,000 $12.00 Per unit vanable cost a 6 points) Solve for the crossover points Show all work b. (4 points) The option GPE is best when the contracted volume is below units (enter your response as a whole number) units 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
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