etters 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:

Process Type	Annualized Fixed Cost of Plant & Equip.	Variable Costs (Per Unit) ($)
		Labor	Material	Energy
Mass Customization	$1,260,000	30	18	12
Intermittent	$1,000,000	24	26	20
Repetitive	$1,625,000	28	15	12
Continuous	$1,960,000	25	15	10

Metters Cabinets projects an annual demand of 24,000 units for the Maxistand. The Maxistand will sell for $120 per unit.

1. Which process type will maximize the annual profit from producing the Maxistand?

2. What is the value of this annual profit?

3. 7.13 Prepare a flowchart for one of the following:

   b. the process at the local car wash

Pearson Chapter 7:

1) Solve numerical Problem 7.9 (a) and (b) on maximizing annual profit for new office shelf process selection

2) Answer Problem 7.13 (b) on preparing a simple version of a process flow chart for a car wash