Problem 7:1 Tanner's Machine Shop, Inc., has a 1-year contract for the production of 50,000 gear housings for a new off-road vehicle. Owner, Danny Tanner, has developed costs for three manufacturing alternatives. They are manufacturing using general-purpose equipment (GPE), a flexible manufacturing system (FMS), and an expensive, but efficient, dedicated machine (DM). The cost data follow: GENERAL- PURPOSE EQUIPMENT (GPE) FLEXIBLE MANUFACTURING SYSTEM (FMS) DEDICATED MACHINE (DM) Annual contracted units Annual fixed cost Per unit variable cost 50,000 $100,000 50,000 $200,000 50,000 $300,000 $50.00 $30.00 $25.00 1. Which process is best for this contract? 2. Determine the economical volume for each process using the cross over calculation method. 3. Determine the best process for each of the following volumes: (1) 12,000 (2) 15,000 and (3) 25,000