Question: PLEASE COMPLETE WORK IN EXCEL SPREADSHEET ONLY. SHOW ALL FORMULAS/FUNCTIONS TO SHOW ANSWERS (SCREENSHOTS) AND EXPLAIN TO ME HOW YOU GOT THE ANSWER. All WORK
PLEASE COMPLETE WORK IN EXCEL SPREADSHEET ONLY. SHOW ALL FORMULAS/FUNCTIONS TO SHOW ANSWERS (SCREENSHOTS) AND EXPLAIN TO ME HOW YOU GOT THE ANSWER. All WORK SHOULD BE IN EXCEL. SCREENSHOT A PICTURE OF ANSWERS THEN A SCREENSHOT OF FORMULAS IN EXCEL
Borges Machine Shop, Inc., has a 1-year contract for the production of 200,000 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:
| General Purpose Equipment (GPE) | Flexible Manufacturing System | Dedicated Machine | |
| Annual Contacted Units | 200,000 | 200,000 | 200,000 |
| Annual Fixed Cost | $ 100,000 | $ 200,000 | $ 500,000 |
| Per Unit Variable Cost | $ 15 | $ 14 | $ 13
|
1) Which process is best for this contract? Explain
2) What is the economical volume for each process (at what volume is each process the cheapest alternative?)
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