Question: 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

Creative Cabinets, Inc., needs to choose a
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 Variable Costs Cost of Plant & (per unit) (s) Process Type Equipment Labour Material Energy Mass Customization $1,260,000 30 18 12 Intermittent $1,000,000 24 26 20 Repetitive $1.720,000 28 15 12 Continuous $2,000,000 25 15 10 Creative Cabinets projects an annual demand of 60,000 units for the Maxistand. The Maxistand will sell for $120 per unit. 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, b) What is the value of this annual profit? The value of annual profit using this method is s (Enter your response as an integer.)

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