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: D Variable Costs Annualized Fixed Cost of Plant & Equipment (per unit) ($) Process Type Labour Material Energy Mass Customization 30 18 12 $1,260,000 $1,000,000 Intermittent 24 26 20 $1,625,000 28 15 12 Repetitive Continuous $1,960,000 25 15 10 Creative Cabinets projects an annual demand of 40,000 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? process. Based on the projected annual demand, the best alternative available is to use the b) What is the value of this annual profit? The value of annual profit using this method is $ (Enter your response as an int Intermittent Repetitive Mass Customization Continuous

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