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 cont data follow General Purpose Equipment (GP) 200.000 $150,000 $15.00 Flexible Manufacturing System (FMS) Annual contracted units Annual fixed cost Per unit variable cost The option GEE is best when the contracted volume is below units (enter your response as a whole number) 200,000 $250,000 $14.00 Dedicated Machine (DM) 200.000 $525,000 $13.00
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 cont data follow General Purpose Equipment (GP) 200.000 $150,000 $15.00 Flexible Manufacturing System (FMS) Annual contracted units Annual fixed cost Per unit variable cost The option GEE is best when the contracted volume is below units (enter your response as a whole number) 200,000 $250,000 $14.00 Dedicated Machine (DM) 200.000 $525,000 $13.00
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
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Transcribed Image Text: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
Annual contracted units
Annual fixed cost
General Purpose
Equipment (GPE)
200.000
$150.000
$15.00
Per unit variable cost
The option GEE is best when the contracted volume is below units (enter your response as a whole number)
Flexible Manufacturing
System (FMS)
200,000
$250.000
$14.00
Dedicated
Machine (DM)
200.000
$525,000
$13.00
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