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Geary Manufacturing has assembled the cost data pertaining to two products. Past experience has shown that the unavoidable fixed manufacturing overhead included in the cost

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Geary Manufacturing has assembled the cost data pertaining to two products. Past experience has shown that the unavoidable fixed manufacturing overhead included in the cost per machine hour averages $10. Geary has a policy of filling all sales orders, even if it means purchasing units from outside suppliers. Total machine capacity is 50,000 hours. Blender Electric mixer Direct materials $6 per unit $11 per unit Direct labor $4 per unit $9 per unit Manufacturing overhead (variable and $16 per unit $32 per unit fixed) at $16 per machine hour Purchase cost from an outside $20 per unit $38 per unit supplier Annual demand in units 20,000 28,000 Required: Determine how many blenders and electric mixers Geary should make in order to best use its machine hours

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