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Q31 Problem 1: Jackson Custom Machine Shop has a contract for 130,000 units of a new product. Sam Jumper, the owner, has calculated the cost for three process alternatives. Fixed costs will be: for general-purpose equipment (GPE), $150,000; flexible manufacturing (FMS), $350,000; and dedicated automation (DA), $950,000. Variable costs will be: GPE, $10; FMS, $8; and DA, $6. Which should he choose? 31 Problem 2: Solve Problem 1 graphically Problem 3: in Using either your analytical solution found in Problem 1, or the graphical solution found Problem 2, identify the volume ranges where each process should be used. Problem 4: If Jackson Custom Machine is able to convince the customer to renew the contract for another one or two years, what implications does this have for his decision