... 7.9 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) ($) LABOR MATERIAL ENERGY y 30 18 12 r at ANNUALIZED FIXED COST OF PROCESS TYPE PLANT & EQUIP. Mass $1,260,000 Customization Intermittent $1,000,000 Repetitive $1,625,000 Continuous $1,960,000 24 26 20 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 31/ S7.16 Smithson Cutting is opening a new line of scissors for supermarket distribution. It estimates its fixed cost to be $500.00 and its variable cost to be $0.50 per unit. Selling price is expected o average $0.75 per unit. 1) What is Smithson's break-even point in units? b) What is the break-even point in dollars? PX 19