Question: Problem 7.2 Question Help Borges Machine Shop, Inc, has a 1-year contract for the production of 225,000 gear housings for a new off-road vehicle. Owner

Problem 7.2 Question Help Borges Machine Shop, Inc, has a 1-year contract for the production of 225,000 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), Nexible manufacturing system (FMS), and expensive, but efficient, dedicated machine (DM). The cost data follow: General Purpose Flexible Manufacturing Dedicated Equipment (GPE) System (FMS) Machine (DM) Annual contracted units 225,000 225,000 225.000 Annual fixed cost $125,000 $225,000 $480,000 Per unit variable cost $18.00 $14.00 $13.00 The option GPE is best when the contracted volume is below units (enter your response as a whole number), Enter your answer in the answer box and then click Check Answer. 2 parts Clear All Check Answer remaining

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