The ABC Corporation has put together the following information regarding its two products:

Blow dryer Leaf blower

Direct Material$8$12

Direct Labor1015

Mfg. Overhead @$20 per mach. hr.2060

Cost from an outside supplier$34$66

Annual demand (units)10,00015,000

Fixed overhead averages $12 per machine hour.

2. How much will ABC save on each blow dryer it makes, rather than purchases from outside?
3. How much will ABC save on each leaf blower it makes, rather than purchases from outside?
4. How much per machine hour will ABC save on each blow dryer it makes?How much per machine hour will ABC save on each leaf blower it makes?
5. If there are only 50,000 machine hours available to ABC, how much of which product should it produce?