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,Problem 7.2 Question Help Borges Machine Shop,

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), flexible manufacturing system (FMS), and expensive, but efficient, dedicated machine (DM). The cost data follow: Annual contracted units Annual fixed cost Per unit variable cost General-Purpose Equipment (GPE) 225,000 $100,000 $15.00 Flexible Manufacturing System (FMS) 225,000 $225,000 $14.00 Dedicated Machine (DM) 225,000 $525,000 $13.00 The option GPE is best when the contracted volume is below units (enter your response as a whole number). The option GPE is best when the contracted volume is below 75000 units (enter your response as a whole number). The option FMS is best when the contracted volume is between 75000 and 255000 units (enter your responses as whole numbers). The option DM is best when the contracted volume is over 255000 units (enter your response as a whole number)

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