Business, 10.03.2020 01:01 ashleypaz15

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: (GPE) (FMS) (DM) Annual contracted units 200,000 200,000 200,000 Annual fixed cost $ 100,000 $ 200,000 $ 480,000 Per unit variable cost $ 18.00 $ 14.00 $ 13.00 The option GPE is best when the contracted volume is below 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 200,000 gear housings for a n...