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: Annual contracted units Annual fixed cost Per unit variable cost General-Purpose Equipment (GPE) 200.000 $125,000 $16.00 Flexible Manufacturing System (FMS) 200.000 $225.000 $14.00 Dedicated Machine (DM) 200.000 $500,000 $13.00 The option GPE is best when the contracted volume is below units (enter your response as a whole number). 2 Tim Urban, owner/manager of Urban's Motor Court in Key West, is considering outsourcing the daily room cleanup for his motel to Duffy's Maid Service. Tim rents an average of 50 roorris for each of 365 nights (365 x 50 equals the total rooms rented for the year). Tim's cost to clean a room is $13.00. The Duffy's Maid Service quote is $18.50 per room plus a fixed cost of $25,000 for sundry items such as uniforms with the motel's name. Tim's annual fixed cost for space, equipment, and supplies is $65,000 Based on the given information related to costs for each of the options, the crossover point for Tim = room nights (round your response to the nearest whole number). California Gardens, Inc., prewashes, shreds, and distributes a variety of salad mixes in 2-pound bags. Doug Voss, Operations VP, is considering a new Hi-Speed shredder to replace the old machine, referred to in the shop as "Clunker." Hi-Speed will have a fixed cost of $81,000 per month and a variable cost of $1.25 per bag. Clunker has a fixed cost of only $35,000 per month, but a variable cost of $1.75. Selling price is $2.50 per bag. a) What is the crossover point in units (point of indifference) for the processes? The crossover point is units. (Round your response to the nearest whole number.) Nagle Electric, Inc., of Lincoln, Nebraska, must replace a robotic Mig welder and is evaluating two alternatives. Machine A has a fixed cost for the first year of $82,000 and a variable cost of $13, with a capacity of 19,000 units per year. Machine B is slower, with a speed of one-half of A's, but the fixed cost is only $53,000. The variable cost will be higher, at $17 per unit. Each unit is expected to sell for $27. a) What is the crossover point (point of indifference) for the two machines? The crossover point for the two machines is units. (Round your response to the nearest whole number.) 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: Annual contracted units Annual fixed cost Per unit variable cost General-Purpose Equipment (GPE) 200.000 $125,000 $16.00 Flexible Manufacturing System (FMS) 200.000 $225.000 $14.00 Dedicated Machine (DM) 200.000 $500,000 $13.00 The option GPE is best when the contracted volume is below units (enter your response as a whole number). 2 Tim Urban, owner/manager of Urban's Motor Court in Key West, is considering outsourcing the daily room cleanup for his motel to Duffy's Maid Service. Tim rents an average of 50 roorris for each of 365 nights (365 x 50 equals the total rooms rented for the year). Tim's cost to clean a room is $13.00. The Duffy's Maid Service quote is $18.50 per room plus a fixed cost of $25,000 for sundry items such as uniforms with the motel's name. Tim's annual fixed cost for space, equipment, and supplies is $65,000 Based on the given information related to costs for each of the options, the crossover point for Tim = room nights (round your response to the nearest whole number). California Gardens, Inc., prewashes, shreds, and distributes a variety of salad mixes in 2-pound bags. Doug Voss, Operations VP, is considering a new Hi-Speed shredder to replace the old machine, referred to in the shop as "Clunker." Hi-Speed will have a fixed cost of $81,000 per month and a variable cost of $1.25 per bag. Clunker has a fixed cost of only $35,000 per month, but a variable cost of $1.75. Selling price is $2.50 per bag. a) What is the crossover point in units (point of indifference) for the processes? The crossover point is units. (Round your response to the nearest whole number.) Nagle Electric, Inc., of Lincoln, Nebraska, must replace a robotic Mig welder and is evaluating two alternatives. Machine A has a fixed cost for the first year of $82,000 and a variable cost of $13, with a capacity of 19,000 units per year. Machine B is slower, with a speed of one-half of A's, but the fixed cost is only $53,000. The variable cost will be higher, at $17 per unit. Each unit is expected to sell for $27. a) What is the crossover point (point of indifference) for the two machines? The crossover point for the two machines is units. (Round your response to the nearest whole number.)