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Meile Machine Shop, Inc., has a 1-year contract for the production of 250,000 gear housings for a new off-road vehicle. Owner Laura Meile hopes
Meile Machine Shop, Inc., has a 1-year contract for the production of 250,000 gear housings for a new off-road 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: general-purpose equipment (GPE), flexible manufacturing system (FMS), and expensive but efficient dedicated machine (DM). The cost data follow: General-Purpose Equipment (GPE) Annual contracted units 250,000 $150,000 $16.00 Annual fixed cost Per unit variable cost Flexible Manufacturing System (FMS) 250,000 $200,000 $14.50 Dedicated Machine (DM) 250,000 $480,000 $13.50 The option GPE is best when the contracted volume is below 33,333 units. (Enter your response as a whole number.) The option FMS is best when the contracted volume is between and units. (Enter your responses as whole numbers.) Clear all Final check P Pearson
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