Ergonomics Kitchen Cabinetry has designed a new Lazy Susan wooden cabinet and needs to choose a new production method. The process types the fictional company can choose from and their associated cost data are provided in the following table:

The expected annual demand for the new Lazy Susan cabinet is 25,000 units, and each unit of Lazy Susan will sell for $200.
1. Which process type will maximize profit for producing this cabinet, and what is the value of this annual profit?
2. Which process type is the best if the annual demand is between 15,000 and 20,000 units?

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Variable Cost per Unit Annualized Fixed (in U.S. dollars) Cost of Plant and Equipment (in U.S. dollars) Process Type Materials Energy Labor Intermittent 40 20 1,000,000 32 Continuous 25 2,200,000 24 11 Repetitive 14 1,700,000 30 19 Mass customization 27 1.300.000 20 15