Question: X Problem 7.2 Question Help Borges Machine Shop, Inc., has a 1-year contract for the production of 200,000 gear housings for a new off-road vehicle.

X Problem 7.2 Question Help Borges Machine Shop,
X Problem 7.2 Question Help Borges Machine Shop,
X Problem 7.2 Question Help Borges Machine Shop,
X Problem 7.2 Question Help Borges Machine Shop,
X Problem 7.2 Question Help Borges Machine Shop, Inc., has a 1-year contract for the production of 200,000 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: General Purpose Flexible Manufacturing Dedicated Equipment (GPE) System (FMS) Machine (DM) Annual contracted units 200,000 200,000 200,000 Annual foxed cost $150,000 $225,000 $525.000 Per unit variable cost $15.00 $14.00 $13.00 The option GPE is best when the contracted volume is below units (enter your response as a whole number) The option GPE is best when the contracted volume is below 50,000 units (enter your response as a whole number). The option EMS is best when the contracted volume is between 50,000 and 250,000 units (enter your responses as whole numbers). The option DM is best when the contracted volume is over 250,000 units (enter your response as a whole number). HW Score: 74.07%, 6.67 of 9 pts Problem 7.7 Question Help Tim Urban, owner/manager of Urban's Motor Court in Key West, is considering outsourcing the daily room cleanup for his motel to Duffy's Maid Service. Timrents an average of 50 rooms for each of 365 nights (365 * 50 equals the total rooms rented for the year). Tim's cost to clean a room is $13.50. The Duffy's Maid Service quote is $18.00 per room plus a fixed cost of $26,000 for sundry items such as uniforms with the motel's name. Tim's annual foxed cost for space, equipment, and supplies is $61,000. Based on the given information related to costs for each of the options, the crossover point for Tim-room nights (round your response to the nearest whole number). Based on the given information related to costs for each of the options, the crossover point for Tim = 8,200 room nights (round your response to the nearest whole number). If the number of room nights is less than the crossover point, then outsourcing is the best option available to Tim Based on the given room nights that Tim expects to rent (18,250), the best option is not outsourcing

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