Question: 749 Metters Cabinets, Inc., needs to choose a production method for its new office shelf, the Maxistand. To help accomplish this, the firm has gathered

749 Metters Cabinets, Inc., needs to choose a
749 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: VARIABLE COSTS (PER UNIT) (S) ANNUALIZED FIXED COST OF PLANT & EQUIP. $1,260,000 LABOR MATERIAL ENERGY 30 18 12 PROCESS TYPE Mass Customization * Intermittent Repetitive Continuous I 24 26 20 $1,000,000 $1,625,000 $1,960,000 28 15 12 25 15 10 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 pro- ducing the Maxistand? b) What is the value of this annual profit? PX 7.10 California Gardens, Inc., prewashes, shruds, and dis

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