The value of annual profit us this method is how much $? Metters Cabinets, Inc., needs to

The value of annual profit us this method is how much $?

 

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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 Variable Costs (per unit) ($) Process Type of Plant & Equipment Labor Material Energy Mass Customization Intermittent $1,260,000 30 18 12 $1,000,000 24 26 20 Repetitive Continuous $1,625,000 $2,000,000 28 15 12 25 15 10 Metters Cabinets projects an annual demand of 24,000 units for the Maxistand. The selling price for the Maxistand is $120 per unit. a) Based on the projected annual demand, the best alternative available is to use the process. Metters Cabinets, Inc., needs to choose a production method for its new office shelf, the Maxistand. To help accomplish this, the firm has gathered the following production cost data: Annualized Fixed Cost Variable Costs (per unit) ($) Process Type of Plant & Equipment Labor Material Energy Mass Customization Intermittent $1,260,000 30 18 12 $1,000,000 24 26 20 Repetitive Continuous $1,625,000 $2,000,000 28 15 12 25 15 10 Metters Cabinets projects an annual demand of 24,000 units for the Maxistand. The selling price for the Maxistand is $120 per unit. a) Based on the projected annual demand, the best alternative available is to use the process.