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    Production method for its new office shelf

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    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:

    Process Type Annualized variable costs
    fixed cost (per unit) ($)
    Plant & Equip. Labor Material Energy
    Mass
    Customization $1,260,000 30 18 12
    Intermittent $1,000,000 24 26 20
    Repetitive $1,625,000 28 15 12
    Continuous $1,960,000 25 15 10

    Creative 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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    https://brainmass.com/business/business-management/329000

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    ** Please see the attached EXCEL file **

    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:

    Process Type ...

    Solution Summary

    Response provides guidance regarding production method for its new office shelf

    $2.19

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