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Borges Machine Shop, Inc., has a 1 - year contract for the production of 2 0 0 , 0 0 0 gear housings for a

Borges Machine Shop, Inc., has a1-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

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