Creative 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:

	Annualized Fixed Cost of Plant & Equipment	Variable Costs (per unit) ($)
Process Type		Labour	Material	Energy
Mass Customization	$1,200,000	30	18	12
Intermittent	$1,000,000	24	26	20
Repetitive	$1,600,000	28	15	12
Continuous	$2,000,000	25	15	10

Creative Cabinets projects an annual demand of

24,000

units for the Maxistand. The Maxistand will sell for

$120

per unit.

Part 2

a) Which process type will maximize the annual profit from producing the Maxistand?

Based on the projected annual demand, the best alternative available is to use the

process.

Part 3

b) What is the value of this annual profit?

The value of annual profit using this method is

$enter your response here.

(Enter your response as an integer.)