Chef Gourmet, Inc., has assembled the following data pertaining to its two most popular products Food Blender Processor $ 22 $ 37 29 92 109 24,000 36,000 Direct material Direct labor Manufacturing overhead @ $46 per 16 46 64 machine hour Cost if purchased from an outside supplier Annual demand (units) Past experience has shown that the fixed manufacturing overhead component included in the cost per machine hour averages $34. Management has a policy of flling all sales orders, even if it means purchasing units from outside suppliers Required: 1. If 58,000 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? Food Processor Blender Manufacture Purchasee 2. With all other things constant, if management is able to reduce the direct material for a food processor to $22 per unit, how many units of each product should be manufactured? Purchased? Food Processor Blender Manufacture Purchase