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Matters Cabinets, Inc., needs to choose a production method for its new office shelf, the Maxistand. To help accomplish this, the firm has gathered
Matters 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: Process Type Mass Customization Intermittent Repetitive Continuous Annualized Fixed Cost of Plant & Equipment Labor Variable Costs (per unit) (5) Material Energy $1,200,000 30 18 12 $1,000,000 24 26 20 $1,800,000 28 15 12 $2,100,000 25 15 10 Metters Cabinets projects an annual demand of 60,000 units for the Maxistand. The seling price for the Maxistand is $120 per unit. a) Based on the projected annual demand, the best alternative available is to use the Repetitive b) The value of annual profit using this method is S 3000 (Enter your response as an integer) process.
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