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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

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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 he volume increased next year. Borges has developed costs or ree alternatives. They are genera pur o e equipment ex man nn system (FMS), and expensive, but efficient, dedicated machine (DM). The cost data follow: General-Purpose Equipment (GPE 200,000 $125,000 Flexible Manufacturing System (FMS) 200,000 $225,000 Dedicated Machine (DM) 200,000 $525,000 Annual contracted units Annual fixed cost Per unit variable cost $15.00 $14.00 $13.00 The option GPE is best when the contracted volume is belowunis (enter your response as a whole number) The option FMS is best when the contracted volume is between andunits (enter your responses as whole numbers). The option DM is best when the contracted volume is over units (enter your response as a whole number)

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