Makayla Meters Cabinets projects an annual demand of 24,000 units for the Maxistand. The selling price for the Maxistand is $120per unit process a) Based on the projected annual demand, the best aberative available is to use the b) The value of annual profit using this method is $(Enter your response as an integer)

Contemporary Marketing
18th Edition
ISBN:9780357033777
Author:Louis E. Boone, David L. Kurtz
Publisher:Louis E. Boone, David L. Kurtz
Chapter15: Distribution Channels And Supply Chain Management
Section15.4: Components Of The Supply Chain
Problem 1LO
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Makayla Metbers 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
Variable Costs (per unit) (5)
Material
Annualized Fixed Cost
of Plant & Equipment
$1,200,000
$1,000,000
$1,025,000
18
26
$1,900,000
Process Type
Mass Customization
Intermittent
Repetitive
Continuous
Makayla Metters Cabinets projects an annual demand of 24,000 units for the Maxistand. The selling price for the Maxistand is $120per unit.
a) Based on the projected annual demand, the best alternative available is to use the
process
b) The value of annual profit using this method is $ (Enter your response as an integer)
Labor
30
24
20
25
15
15
Energy
12
20
12
10
Transcribed Image Text:← Makayla Metbers 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 Variable Costs (per unit) (5) Material Annualized Fixed Cost of Plant & Equipment $1,200,000 $1,000,000 $1,025,000 18 26 $1,900,000 Process Type Mass Customization Intermittent Repetitive Continuous Makayla Metters Cabinets projects an annual demand of 24,000 units for the Maxistand. The selling price for the Maxistand is $120per unit. a) Based on the projected annual demand, the best alternative available is to use the process b) The value of annual profit using this method is $ (Enter your response as an integer) Labor 30 24 20 25 15 15 Energy 12 20 12 10
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