Borges Machine Shop, Inc., has a 1-year contract for the production of 225,000 gear housings for a new off-roadvehicle. Owner Luis Borges hopes the contract will be extended and the volume increased next year. Borges hasdeveloped costs for three alternatives. They are general-purpose equipment (GPE), flexible manufacturingsystem (FMS), and expensive, but efficient, dedicated machine (DM). The cost data follow:Annual contracted unitsAnnual fixed costPer unit variable costGeneral-PurposeEquipment (GPE)225,000$125,000$18.00The option GPE is best when the contracted volume is belowFlexible ManufacturingSystem (FMS)DedicatedMachine (DM)225,000$500,000$13.00225,000$200,000$14.00☐units (enter your response as a whole number). The option GPE is best when the contracted volume is below 75,000 units (enter your response as a whole number).The option FMS is best when the contracted volume is between 75001 and 325,000 units (enter your responses aswhole numbers).The option DM is best when the contracted volume is over 325,000 units (enter your response as a whole number).

GPEFMSDMAnnual contracted units225,000225,000225,000Annual fixed cost$125,000$200,000$500,000Per…

Answered: Borges Machine Shop, Inc., has a 1-year…

MARKETING 2018

19th Edition

ISBN:9780357033753

Author:Pride

Publisher:Pride

Chapter6: Target Markets: Segmentation And Evaluation

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Borges Machine Shop, Inc., has a 1-year contract for the production of 250,000 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) 250,000 Annual contracted units Annual fixed cost $125,000 Per unit variable cost $18.00 The option GPE is best when the contracted volume is below Flexible Manufacturing System (FMS) 250,000 $250,000 $14.00 D Dedicated Machine (DM) 250,000 $480,000 $13.00 units (enter your response as a whole number)
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: Flexible Manufacturing System (FMS) General-Purpose Equipment (GPE) 200,000 Annual contracted units Annual fixed cost $150,000 Per unit variable cost $18.00 The option GPE 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 250,000 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 250,000 250,000 250,000 Annual fixed cost $125,000 $250,000 $500,000 Per unit variable cost $18.00 $14.00 $13.00 If the contract for the second and third years is pending, for…
Borges Machine Shop, Inc., has a 1-year contract for the production of 250,000 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) 250,000 $125,000 $15.00 Annual contracted units Annual fixed cost Per unit variable cost The option GPE is best when the contracted volume is below units (enter your response as a whole number). Dedicated Machine (DM) 250,000 $225,000 $14.00 250,000 $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 cost data follow: General-Purpose Equipment (GPE) Flexible Manufacturing System (FMS) Dedicated Machine (DM) 200,000 Annual contracted units Annual fixed cost Per unit variable cost $125,000 $16.00 If the contract for the second and third years is pending, for demand below 37,500 units, option FMS is the best alternative for Luis. For demand above 280,000 units, option is the best alternative for Luis 200,000 $200,000 $14.00 200,000 $480,000 $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 cost data follow: General-Purpose Equipment (GPE) Flexible Manufacturing System (FMS) Dedicated Machine (DM) Annual contracted units 200,000 200,000 200,000 $100,000 $18.00 $200,000 $14.00 $480,000 $13.00 Annual fixed cost Per unit variable cost The option GPE is best when the contracted volume is below units (enter your response as a whole number).
Borges Machine Shop, Inc., has a 1-year contract for the production of 225,000 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 225,000 225,000 225,000 Annual fixed cost $100,000 $225,000 $480,000 Per unit variable cost $16.00 $14.00 $13.00 Part 2 The option GPE is best when the contracted volume is below…
Borges Machine Shop, Inc., has a 1-year contract for the production of 225,000 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 225,000 225,000 225,000 Annual fixed cost $125,000 $250,000 $480,000 Per unit variable cost $18.00 $14.00 $13.00 a.The option GPE is best when the contracted volume is below ------ units (enter your response as a whole number).…
Borges Machine Shop, Inc., has a 1-year contract for the production of 75,000 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 75,000 75,000 75,000 Annual fixed cost $100,000 $200,000 $525,000 Per unit variable cost $15.00 $14.00 $13.75 Part 2 Based on the total cost, the process that is best suited for…
Borges Machine Shop, Inc., has a 1-year contract for the production of 75,000 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 75,000 75,000 75,000 Annual fixed cost $150,000 $250,000 $500,000 Per unit variable cost $16.00 $14.75 $13.00 Part 2 Based on the total cost, the process that is best suited for…
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
Borges Machine Shop, Inc., has a 1-year contract for the production of 75,000 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 Per unit variable cost General-Purpose Equipment (GPE) 75,000 $100,000 $16.00 Flexible Manufacturing System (FMS) 75,000 $225,000 $14.00 Dedicated Machine (DM) 75,000 $450,000 $13.75 Based on the total cost, the process that is best suited for the current contracted volume is Suppose the contracted volume changes to 275,000 gear housings. Based on the total cost, the process that is best suited for the new volume is Suppose the contracted volume changes to 375,000 gear housings. Based on the total cost, the process that is best suited…

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