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Kitchen Magician, Inc. has assembled the following data pertaining to its two most popular products Blender 23 16 56 80 39,000 Electric Mixer Direct material Direct labor Manufacturing overhead $56 per machine hour Cost if purchased from an outside supplier Annual demand (units) 34 112 150 47,000 Past experience has shown that the fixed manufacturing overhead component included in the cost per machine hour averages $28 Kitchen Magician's management has a policy of filling all sales orders, even if it means purchasing units from outside suppliers Required 1. If 82,000 machine hours are available, and management desires to follow an optimal strategy, how many units of each product should the firm manufacture? How many units of each product should be purchased? 2. With all other things constant, if management is able to reduce the direct material for an electric mixer to $23 per unit, how many units of each product should be manufactured? Purchased? Complete this question by entering your answers in the tabs below. Required 1Required 2 If 82,000 machine hours are available, and management desires to follow an optimal strategy, how many units of each product should the firm manufacture? How many units of each product should be purchased? Blender Electric Mixer Manufacture Purchase Complete this question by entering your answers in the tabs below. Required 1Required 2 With all other things constant, if management is able to reduce the direct material for an electric mixer to $23 per unit, how many units of each product should be manufactured? Purchased? Blender Electric Mixer Manufacture Purchase

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