Chef Gourmet, Inc., has assembled the following data pertaining to its two most popular products. Food Blender Processor Direct material $ 20 $ 28 Direct labor 13 41 Manufacturing overhead @ $50 per machine hour 50 100 Cost if purchased from an outside supplier 70 136 Annual demand (units) 36,000 44,000 Past experience has shown that the xed manufacturing overhead component included in the cost per machine hour averages $25. Management has a policy of lling all sales orders, even if it means purchasing units from outside suppliers. Required: 1. If 76,000 machine hours are available, and management desires to follow an optimal strategy, how many units of each product should the rm 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 a food processor to $20 per unit, how many units of each product should be manufactured? Purchased