A product is currently made in a process-focused shop, where fixed costs are $9,000 per year and variable cost is $50 per unit. The firm is considering a fundamental shift in process, to product focused or repetitive manufacture or mass customization. The product focused process would have fixed costs of $90,000, and variable costs of $5 while the repetitive manufacturing would have fixed costs of $45,000 and variable costs of $20/unit. Mass customization will involve fixed costs of $75,000 and variable costs of $30/unit. Which process incurs least cost if the demand is 15,000 units per year? O Product focused manufacturing O Lean manufacturing O Repetitive manufacturing O Mass customization O Process focused manufacturing

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A product is currently made in a process-focused shop, where fixed costs are $9,000 per year and variable cost is $50 per unit. The firm is considering a fundamental shift in process,
to product focused or repetitive manufacture or mass customization. The product focused process would have fixed costs of $90,000, and variable costs of $5 while the repetitive
manufacturing would have fixed costs of $45,000 and variable costs of $20/unit. Mass customization will involve fixed costs of $75,000 and variable costs of $30/unit.
Which process incurs least cost if the demand is 15,000 units per year?
Product focused manufacturing
O Lean manufacturing
O Repetitive manufacturing
Mass customization
Process focused manufacturing
Transcribed Image Text:A product is currently made in a process-focused shop, where fixed costs are $9,000 per year and variable cost is $50 per unit. The firm is considering a fundamental shift in process, to product focused or repetitive manufacture or mass customization. The product focused process would have fixed costs of $90,000, and variable costs of $5 while the repetitive manufacturing would have fixed costs of $45,000 and variable costs of $20/unit. Mass customization will involve fixed costs of $75,000 and variable costs of $30/unit. Which process incurs least cost if the demand is 15,000 units per year? Product focused manufacturing O Lean manufacturing O Repetitive manufacturing Mass customization Process focused manufacturing
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