Question: Show ALL work 7.5 Meile Machine Shop, Inc., has a one-year contract for the production of 200 000 gear housings for a new off-road vehicle.

Show ALL work Show ALL work 7.5 Meile Machine Shop, Inc., has a

7.5 Meile Machine Shop, Inc., has a one-year contract for the production of 200 000 gear housings for a new off-road vehicle. Owner Larry Meile hopes the contract will be extended and the volume increased next year. Meile 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: General-Purpose Equipment (GPE) Flexible Manufacturing System (FMS) Dedicated Machine (DM) Annual 200 000 200 000 200 000 contracted units Annual fixed S100 000 S200 000 S500 000 cost Per unit $15.00 $14.00 $13.00 variable cost Which process is best for this contract? PX 7.6 Using the data in Problem 7.5, determine the economical volume for each process. x 7.7 Using the data in Problem 7.5, determine the best process for each of the following volumes: (1) 75 000, (2) 275 000, and (3) 375 000. 7.8 Refer to Problem 7.5. If a contract for the second and third years is pending, what are the implications for process selection

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