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eile Machine Shop, Inc., has a 1 - year contract for the production of 2 0 0 comma 0 0 0 gear housings for a
eile Machine Shop, Inc., has ayear contract for the production of comma gear housings for a new offroad vehicle. Owner Laura Meile hopes the contract will be extended and the volume increased next year. Meile has developed costs for three alternatives. They are: generalpurpose equipmentGPE flexible manufacturing system FMSLOADING and expensive but efficient dedicated machineDM The cost data follow:
GeneralPurpose EquipmentGPE
Flexible Manufacturing SystemFMS
Dedicated MachineDM
Annual contracted units
comma
comma
comma
Annual fixed cost
$ comma
$ comma
$ comma
Per unit variable cost
$
$
$
Part
The option GPE is best when the contracted volume is below
enter your response here units. Enter your response as a whole number.
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