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:

Creative Cabinets projects an annual demand of 24,000 units for the Maxistand will sell for $120 per unit.
(a) Which process type will maximize the annual profit from producing the Maxistand?
(b) What is the value of this annualprofit?

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Variable Costs Annualized Fixed Cost of Process Type Mass Plant & Equip. Labor Material Energy Customization $1,260,000 30 18 nterittent Repetitive Continuous 12 20 12 10 2 $1,000,000 24 $L,625,000 28 $1,960,000 25 15