Kitchen Magician, Inc. has assembled the following datapertaining to its two most popular products.

	Blender				Electric Mixer
Direct material	$	17			$	26
Direct labor		10				38
Manufacturing overhead @ $44 per machine hour		44				88
Cost if purchased from an outside supplier		64				132
Annual demand (units)		33,000				38,000

Past experience has shown that the fixed manufacturing overheadcomponent included in the cost per machine hour averages $22.Kitchen Magician’s management has a policy of filling all salesorders, even if it means purchasing units from outsidesuppliers.

Required:

1. If 70,000 machine hours are available, and management desiresto follow an optimal strategy, how many units of each productshould the firm manufacture? How many units of each product shouldbe purchased?
2. With all other things constant, if management is able to reducethe direct material for an electric mixer to $17 per unit, how manyunits of each product should be manufactured? Purchased?

Questions I need answered by chegg :)

If 70,000 machine hours are available, and management desires tofollow an optimal strategy, how many units of each product shouldthe firm manufacture? How many units of each product should bepurchased?

	Blender Electric Mixer Manufacture Purchase

With all other things constant, if management is able to reducethe direct material for an electric mixer to $17 per unit, how manyunits of each product should be manufactured? Purchased?

	Blender Electric Mixer Manufacture Purchase