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2. [8 points] Mixer, Inc. has assembled the following data pertaining to two products. Hand Mixer $6 $5 $16 Standing Mixer $11 $10 $32 Direct
2. [8 points] Mixer, Inc. has assembled the following data pertaining to two products. Hand Mixer $6 $5 $16 Standing Mixer $11 $10 $32 Direct Material Direct Labor Factory OVH ($16 per machine hour) Selling price per unit Annual Demand in units $22 $40 28,000 20,000 Past experience has shown that the unavoidable fixed factory overhead included in the cost per machine hour is $10. Direct labor is paid at $20 per hour. Mixer, Inc. has a policy of filling all sales orders, even if it means purchasing units from outside suppliers at the same per unit that Mixer, Inc. currently charges. Required: a. Assume the company has 50,000 machine hours available. What would be the optimal production of each product to maximize the company's profits
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