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.

$\backslash$table$[[,$General$-$Purpose,Flexible Manufacturing,$\backslash$table$[[$Dedicated$],[$Machine $($DM$)]]],[$Equipment $($GPE$),$System $($FMS$),200,000,],[$Annual contracted units,$200,000,200,000,$$$525,000$