Kitchen Magician, Inc. has assembled the following data pertaining to its two most popular products. Direct material Oirect *abor Manufacturing overhead Cost if ourchased from Annual demand (uni ts) @ $56 oer machftne hour an outsde suoo\ ier Bl ender 56 71 29, ooo El ect tic Mi*er 47 34 36, ooo Past experience has shown that the fixed manufacturing overhead component included in the cost per machine hour averages $44. Kitchen Magician's management has a policy of filling all sales orders, even if it means purchasing units from outside suppliers. Required: 1. If 62,000 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 $27 per unit, how many units of each product should be manufactured? Purchased?