Business, 01.10.2019 01:30 babylear

Borges machine shop, inc., has a 1-year contract for the production of 225 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, but efficient, dedicated machine (dm). the cost data follow: general-purpose equipment (gpe) flexible manufacturing system (fms) dedicated machine (dm) annual contracted units 225 comma 000 225 comma 000 225 comma 000 annual fixed cost $ 150 comma 000 $ 225 comma 000 $ 500 comma 000 per unit variable cost $ 16.00 $ 14.75 $ 13.75 based on the cost, the process that is best suited for the current contracted volume is

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Borges machine shop, inc., has a 1-year contract for the production of 225 comma 000 gear housings f...