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Creative Cabinets Inc., needs to choose a production method for its new office shelf, the Maxistand. To help accomplished this, the company has gathered the following production cost data: ANNUALIZED VARIABLE COSTS PER UNIT PROCESS TYPE FC LABOR MATERIAL ENERGY MASS $1,260,000 30 18 17 CUSTOMIZATION INTERMITTENT 1,000,000 34 16 20 REPETITIVE 1,425,000 28 20 15 CONTINUOUS 1,600,000 25 25 13 Creative Cabinets projects an annual demand of 18,000 units for the maxistand. The maxistand will sell for $195 per unit. What is the difference between the highest and lowest profit.

Creative Cabinets Inc., needs to choose a production method for its new office shelf, the Maxistand. To help accomplished this, the company has gathered the following production cost data: ANNUALIZED VARIABLE COSTS PER UNIT PROCESS TYPE FC LABOR MATERIAL ENERGY MASS $1,260,000 30 18 17 CUSTOMIZATION INTERMITTENT 1,000,000 34 16 20 REPETITIVE 1,425,000 28 20 15 CONTINUOUS 1,600,000 25 25 13 Creative Cabinets projects an annual demand of 18,000 units for the maxistand. The maxistand will sell for $195 per unit. What is the difference between the highest and lowest profit.

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Creative Cabinets Inc., needs to choose a production method for its new office shelf, the Maxistand. To help accomplished this, the company has gathered the following production cost data: ANNUALIZED VARIABLE COSTS PER UNIT PROCESS TYPE FC LABOR MATERIAL ENERGY MASS CUSTOMIZATION $1,260,000 30 18 17 INTERMITTENT 1,000,000 34 16 20 REPETITIVE 1,425,000 28 20 15 CONTINUOUS 1,600,000 25 25 13 Creative Cabinets projects an annual demand of 18,000 units for the maxistand. The maxistand will sell for $195 per unit. What is the difference between the highest and lowest profit. Select one: a. P304k b. P744k c. P474k d. P299k
Transcribed Image Text:Creative Cabinets Inc., needs to choose a production method for its new office shelf, the Maxistand. To help accomplished this, the company has gathered the following production cost data: ANNUALIZED VARIABLE COSTS PER UNIT PROCESS TYPE FC LABOR MATERIAL ENERGY MASS CUSTOMIZATION $1,260,000 30 18 17 INTERMITTENT 1,000,000 34 16 20 REPETITIVE 1,425,000 28 20 15 CONTINUOUS 1,600,000 25 25 13 Creative Cabinets projects an annual demand of 18,000 units for the maxistand. The maxistand will sell for $195 per unit. What is the difference between the highest and lowest profit. Select one: a. P304k b. P744k c. P474k d. P299k
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