Part 1 of 3 Borges Machine Shop, Inc., has a 1-year contract for the production of 75,000 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: General-Purpose Flexible Manufacturing Dedicated Equipment (GPE) System (FMS) Machine (DM) Annual contracted units 75,000 75,000 75,000 Annual fixed cost $125,000 $200,000 $500,000 Per unit variable cost $18 00 $14.75 $13.75 Based on the total cost, the process that is best suited for the current contracted volume is DM GPE FMS