Answer:
Find attached missing part of the question:
The option gpe is best when the contracted volume is below 31250 units
The option fms is best when the contracted volume is between 31,250 and 230,000 units
The option DM is best when contracted volume is above 230,000 units
Step-by-step explanation:
let x represent the volume produced in each of the three options:
Total cost(TC) =fixed cost+(variable per unit*x)
for general purpose equipment:
TC=125,000+18x equation 1
for flexible manufacturing system
TC=250,000+14x equation 2
for dedicated machine
TC=480,000+13x equation 3
if we set equations 1 and 2 together
125,000+18x=250,000+14x
If we equate equations 2 and 3 together
250,000+14x=480,000+13x
14x-13x=480,000-250,000
x=230,000
18x-14x=250,000-125,000
4x=125,000
divide both sides y 4
x=125,000/4=31250
