Process Strategy Question 2, Problem 7.2 Part 1 of 3 Get more help > General-Purpose Equipment (GPE) 225,000 Annual contracted units Annual fixed cost Per unit variable cost $100,000 $16.00 The option GPE is best when the contracted volume is below units (enter your response as a whole number). Search 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: HW Score: 0%, 0 of 15 points O Points: 0 of 4 Flexible Manufacturing System (FMS) 225,000 $225,000 $14.00 Dedicated Machine (DM) 225,000 $525,000 $13.00 Save Clear all Check answer

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