Question: Problem 7.3 Question Help Borges Machine Shop, Inc. has a 1-year contract for the production of 75,000 gear housings for a new off-road vehicle. Owner

Problem 7.3 Question Help Borges Machine Shop, Inc. has a 1-year contract for the production of 75,000 gear housings for a new off-road vehicle. Owner Luis Borges hopes the contract will be extended and the volume incre sed next year. Borges has developed costs for three alternatives. They are general purpose equipment (GPE), feble 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) 75 000 $125,000 $16.00 Flexible Manufacturing System (FMS) 75 000 $225,000 $1475 Dedicated Machine (DM) 75,000 $500.000 $1350 Based on the total cost, the process that is best suited for the current contracted volume is GPE Suppose the contracted volume changes to 275,000 gear housings. Based on the total cost, the process that is best suited for the new volume is Click to select your answer(s) and then click Check Answer part Clear Al remaining

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