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Please answer all 3 parts to this problem and explain hos you got the answers. Thank you Borges Machine Shop, Inc. has a 1-year contract
Please answer all 3 parts to this problem and explain hos you got the answers. Thank you
Borges Machine Shop, Inc. has a 1-year contract for the production of 225,000 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 officient, dedicated machine (DM) The cost data follow Annual contracted units Annual fixed cost Per unit variable cost General Purpose Equipment (GPE) 225,000 $150,000 $18.00 Flexible Manufacturing System (FMS) 225,000 $200 000 $1400 Dedicated Machine (DM) 225,000 $500,000 $13.00 The option GPE la best when the contracted volume di below units (orite your response as a whole number Step by Step Solution
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