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Production Method Assignment | Top Universities

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February 13th, 2020

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:

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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 Marxist and 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? Get Accounting Homework Help Today.

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