Question: 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

Metters Cabinets, Inc., needs to choose a
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) ($) Process Type Annualized Fixed Cost of Plant & Equip. Labor Material Energy Mass Customization $1,260,000 35 28 18 Intermittent $1,000,000 30 26 20 Repetitive $1,625,000 25 25 22 Continuous $1,960,000 20 15 10 Metters Cabinets projects an annual demand of 44,000 units for the Maxistand. The Maxistand will sell for $130 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. If you solve the question using Excel OM

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