Business, 24.03.2020 00:52 yejinschoi6362

Borges Machine Shop, Inc., has a 1-year contract for the production of 200 comma 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, butefficient, dedicated machine (DM). The cost data follow: General-Purpose Equipment (GPE) Flexible Manufacturing System(FMS) Dedicated Machine (DM) Annual contracted units 200 comma 000 200 comma 000 200 comma 000 Annual fixed cost $ 150 comma 000 $ 250 comma 000 $ 500 comma 000 Per unit variable cost $ 18.00 $ 14.00 $ 13.00

The option GPE is best when the contracted volume is below 25000 units (enter your response as a whole number).

The option FMS is best when the contracted volume is between 25000 and 250000 units (enter your responses as wholenumbers).

The option DM is best when the contracted volume is over units (enter your response as a whole number).

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Borges Machine Shop, Inc., has a 1-year contract for the production of 200 comma 000 gear housings f...

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