QUESTION 1:

QUESTION 2:

QUESTION 3:

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 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) 75,000 $150,000 $16.00 Flexible Manufacturing System (FMS) 75,000 $200,000 $14.75 Dedicated Machine (DM) 75,000 $480,000 $13.50 Based on the total cost, the process that is best suited for the current contracted volume is FMS DM GPE Matthew Bailey, as manager of Designs by Bailey, is upgrading his CAD software. The high-performance (HP) software rents for $3,000 per month per workstation. The standard-performance (SP) software rents for $2,000 per month per workstation. The productivity figures that he has available suggest that the HP software is faster for his kind of design. Therefore, with the HP software he will need 5 engineers and with the SP software he will need 6. This translates into a variable cost of $200 per drawing for the HP system and $240 per drawing for the SP system. If it is projected that the volume will be 80 drawings per month, then renting software is the best option available to Matthew. high-performance standard-performance Southeastern Oklahoma State University's business program has the facilities and faculty to handle an enrollment of 2,200 new students per semester. However, in an effort to limit class sizes to a "reasonable" level (under 200, generally), Southeastern's dean, Holly Lutze, placed a ceiling on enrollment of 1,500 new students. Although there was ample demand for business courses last semester, conflicting schedules allowed only 1,420 new students to take business courses. The utilization rate for Southeastern =( % (enter your response as a percentage rounded to one decimal place)