Creative Designs makes intricate jewelry out of precious metal. The company is introducing a new line and needs to select a manufacturing process. Three options are available. The first involves using a mold to mass produce the design for pendants, earrings, and bracelets. The second option laser cuts the design from a block of metal using a pattern directed by the software. The third option builds the design out of metal powder (gold, silver, and bronze) via a 3D printer. The company is uncertain about demand for the new design.

a. If Creative Designs expects to sell 200 pieces of the new design, which process should it use?
b. If Creative Designs expects to sell 1000 pieces of the new design, which process should it use?
c. Create a decision rule that specifies which process to select for different levels ofdemand.

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Option Fixed Cost $10,000 5,000 3,000 Variable Cost $10 $30 $50