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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
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: 1.- The option GPE is best when the contracted volume is below units. (enter your response as a whole number). 2.- The option FMS is best when the contracted volume is between units. (enter your responses as whole numbers). 3.- The option DM is best when the contracted volume is over units. (enter your response as a whole number)
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