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A machine shop has a 1 - year contract to produce 1 0 0 , 0 0 0 gear housings for a new product. The

A machine shop has a 1-year contract to produce 100,000 gear housings for a new product. The company has developed costs for three alternative production processes. They are general-purpose equipment (GPE), flexible manufacturing system(FMS), and expensive, but efficient, dedicated machine(DM). Details are provided below
What are the breakeven points for GPE vs FMS, GPE vs DM and FMS vs DM?
What process has the lowest total cost?

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