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.7.9 Metters Cabinets, Inc., nceds to choose a production method for its new office shelf, the Maxistand. To help accomplish this, the firm has gathered
.7.9 Metters Cabinets, Inc., nceds 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: VARIABLE COSTS (PER UNIT) (S) ANNUALIZED FIXED COST OF PLANT & EQUIP. LABOR MATERIAL PROCESS TYPE ENERGY Mass $1,260,000 30 18 12 Customization Intermittent $1,000,000 24 26 20 $1,625,000 Repetitive 28 15 12 $1,960,000 Continuous 25 15 10 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 pro- ducing the Maxistand? b) What is the value of this annual profit? Px un
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