Question: 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

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?

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

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