Question content area

Part $1$

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 Cost of Plant$$ & Equipment

Variable Costs

$($per unit$)($$$)$

Process Type

Labour

Material

Energy

Mass Customization

$ $1$ comma $400$ comma $000$

$30$

$18$

$12$

Intermittent

$ $1$ comma $000$ comma $000$

$24$

$26$

$20$

Repetitive

$ $1$ comma $625$ comma $000$

$28$

$15$

$12$

Continuous

$ $1$ comma $960$ comma $000$

$25$

$15$

$10$

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

Part $2$

$$a$)$ Which process type will maximize the annual profit from producing the$$ Maxistand?

Based on the projected annual$$ demand, the best alternative available is to use the

$$

Mass Customization

Continuous

Intermittent

Repetitive

process.

Part $3$

$$b$)$ What is the value of this annual$$ profit?

The value of annual profit using this method is $$$

$$

enter your response here. $($Enter your response as an$$ integer