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 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

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

$2,000,000

25

15

10

Metters Cabinets projects an annual demand of

60,000 units for the Maxistand. The selling price for the Maxistand is $120 per unit.

1. Based on the projected annual demand, the best alternative available is to use the ___ process.

a. Continuous

b. Mass Customization

c. Intermittent

d. Repetitive

2. The value of annual profit using this method is $_____ enter your response here. (Enter your response as an integer.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!