Borges Machine$$ Shop, Inc., has a$1-$year contract for the production of $250000$ gear housings for a new$$ 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$).$ TheGeneral$-$Purpose Equipment $($GPE$)$ Flexible Manufacturing System $($FMS$)$ Dedicated Machine $($DM$)$

Annual contracted units $250,000250,000250,000$

Annual fixed cost $$100,000$ $$225,000$ $$500,000$

Per unit variable cost $$15\mathrm{.}00$ $$14\mathrm{.}00$ $$13\mathrm{.}00$

cost The option GPE is best when the contracted volume is below

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Part $3$

The option FMS is best when the contracted volume is between

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Part $4$

The option DM is best when the contracted volume is over

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