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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: Process Type Annualized Fixed Cost of Plant and Equip. Variable Costs Labor Material Energy Mass Customization $1,260,000 30 18 12 Intermittent $1,000,000 24 26 20 Repetitive $1,625,000 28 15 12 Continuous $1,960,000 25 15 10 Metters Cabinets projects an annual demand of 24,000 units for the Maxistand. The maxistand 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?

Respuesta :

The amount of money made from the end of the period is called net profit.It is calculated by dividing the total amount spent on costs by the total amount sold.The variable and fixed costs of a product or period of time make up the total costs.

Mass customization costs $60, plus $18 and $12.

How does net profit work?

The amount your business makes after deducting all operating, interest, and tax costs over a given time period is called net profit.You will need to know a company's gross profit in order to arrive at this value.

How is net profit calculated?

Gross profit minus operating costs and taxes is net profit.It can also be thought of as total income less all costs.

Learn more about Net Profit here:

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