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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