Discuss the below:
Q: 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: Metters Cabinets projects an annual demand of 24,000 units for the Maxistand. The selling price for the Maxistand is $120 per unit. Based on the projected annual demand, the best alternative available is to use the process.
Process Type Annualized Fixed Cost of Plant 8 Equipment
Mass Customization $1,200,000
Intermittent $1.000,000
Repetitive $1.720,000
Continuous $2,000,000