Fly High Inc. is a fictional manufacturer of snowboards. The company has designed a new ski board and needs to choose a new production method. The process types the company can choose from and their associated cost data are provided in the following table:

The expected annual demand for the new snowboard is 30,000 units.

1. Which process type is the best for a production volume of 30,000 units?

2. Which process type is the best for a production volume between 50,000 and 70,000 units?

3. At what production volume will the company be indifferent to choosing between the mass customization process and the repetitive process?

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Variable Cost Per Unit (in U.S. dollars) Fixed Cost of Plant and Equipment (in U.S. dollars) Process Type Labor Materials Energy 900,000 Intermittent 25 30 22 Continuous 2,000,000 20 18 12 Repetitive 1,600,000 22 20 14 14 Mass customization 1,200,000 30 25