Metters Cabinets, Inc., needs to choose a production method for its new office shelf, the Maxistand. To help accomplish this, the firm has gathered the following production cost data:

Metters Cabinets projects an annual demand of 24,000 units for the Maxistand. The Maxistand will sell for $ 120 per unit.
a) Which process type will maximize the annual profit from producing the Maxistand?
b) What is the value of this annualprofit?

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ANNUALIZED VARIABLE COSTS (PER UNID rs) RXED COST OF PROCESSTYPE | PLANT & EQUIP. | LABOR I MATERIAL I ENERGY Mass Intermittent Repetitive Continucus Customizaon 1,260,000 $1,000,000 S1,625,000 51,960,000 30 24 28 25 18 26 15 15 12 20 12 10