QUESTION 1 7.1: Borges Machine Shop, INC., has a 1-year contract for the production of 200,000 gear housings for. New off-road vehicle. Owner Luis 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: GPE FMS DM Annual contracted units 200,000 200,000 200,000 Annual fixed cost $100,000 $200,000 $500,000 Per unit variable cost $15 $14 $13 Which process is best for this contract? GPE. FMS o DM They are all the same