Using the data in Problem 7.5, determine the best process for each of the following General Flexible Purpose Manufacturing Equipment System (GPE) FMS) Annual fixed cost $100,000 $200,000 Per unit variable cost $15 $14 Solution Cost for Respective processes would be : General Purpose Equipment (GPE Annual fixed cost + Annual contracted u Flexible Manufacturing System (FMS) = Annual fixed cost + Annual contracted u Dedicated Machine (DM) = Annual fixed cost + Annual contracted u Cost when the Annual contracted units is 75000 units General Purpose Equipment (GPE) $1,225,000 Flexible Manufacturing System (FMS) = $1,250,000 Dedicated Machine (DM) = $1,475,000 Cost when the Annual contracted units is 275000 units General Purpose Equipment (GPE) = $4,225,000 Flexible Manufacturing System (FMS) = $4,050,000 Dedicated Machine (DM) = $4,075,000 Cost when the Annual contracted units is 375000 units General Purpose Equipment (GPE) = $5,725,000 Flexible Manufacturing System (FMS) = $5,450,000 Dedicated Machine (DM) = $5,375,000 From the above calculations we can easily come to a conclusion that at the ideal pro changes with the number of units to be manufactured. For an instance, the above ca 75,000 units General Purpose Equipment would be the most economical process, f economical process would Flexible Manufacturing System while for 375,000 the m process is Dedicated Machine. From this we can understand that with the increase i feasible for Borges Machine Shop, Inc. to go for a dedicate machines and for smalle