7.9 Metters Cabinets, Inc., needs to choose a production method for its new office shelf, the Maxistand.

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• • • 7.9 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:

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Metters Cabinets projects an annual demand of 24,000 units for the Maxistand. 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 annual profit?

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Operations Management: Sustainability And Supply Chain Management

ISBN: 9780135225899,9780135202722

13th Edition

Authors: Jay Heizer; Barry Render; Chuck Munson

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Question Posted: Sep 20, 2024 12:01 AM

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7.9 Metters Cabinets, Inc., needs to choose a production method for its new office shelf, the Maxistand.

Question:

PROCESS TYPE Mass Customization Intermittent Repetitive ANNUALIZED FIXED COST OF PLANT & EQUIP. $1,260,000 VARIABLE COSTS (PER UNIT) ($) LABOR MATERIAL ENERGY 30 18 12 $1,000,000 24 26 20 $1,625,000 28 15 12 Continuous $1,960,000 25 15 10

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Operations Management: Sustainability And Supply Chain Management

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