1. Define the four different basic types of manufacturing processes.

- Job process

- Batch process

* small or large

- Line Process

- Continous-flow-process

2. Describe the differences among make-to-order, assemble-to-order, and make-to-stock strategies from the producer's and from the customer's perspective.

3. Your small business locally manufactures canned coconut juice. You currently purchase a part used in your production process from an outside supplier, and have decided to begin making this part in-house. You have two equipment options for moving production in-house: special-purpose equipment and general-purpose equipment. Cost information for these two options is as follows:

ALTERNATIVE	FIXED COST	VARIABLE COST
Special-Purpose Equipment	$200,000 per year	$15 per unit
General-Purpose Equipment	$50,000 per year	$20 per unit

Use the chart to answer this question. What are total costs under the Special-Purpose Equipment option for an annual quantity of 40,000 units?