Question: please show steps mo to bo be 7.1 Borges Machine Shop, Inc., has a 1-year contract for the production of 200,000 gear housings for a

please show steps mo to bo be 7.1 Borges Machine

please show steps

mo to bo be 7.1 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 FLEXIBLE EQUIPMENT MANUFACTURING (GPE) SYSTEM (FMS) 200,000 200,000 DEDICATED MACHINE (DM) 200,000 in Annual contracted units Annual fixed cost Per unit variable cost $100,000 $ 15.00 $200,000 $ 14.00 $500,000 $ 13.00 for 50r rent: Duf of $ nam is $6 Which process is best for this contract? PX

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