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7 . 9 Makayla Metters Cabinets, Inc., needs to choose a production method for its new office shelf, the Maxistand. To help accomplish this, the
Makayla 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:
tabletablePROCESSTYPEtableANNUALIZEDFIXED COST OFPLANT & EQUIP.VARIABLE COSTS PER UNIT$LABORMATERIAL,ENERGYtableMassCustomization$Intermittent$Repetitive$Continuous$
Makayla Metters Cabinets projects an annual demand of units for the Maxistand. The Maxistand will sell for $ 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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