Borges Machine$$ Shop, Inc., has a$1-$year contract for the production of gear housings for a new$$ 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$$ efficient, dedicated machine$($DM$).$ The cost data$$ folloGeneral$-$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$w: