Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Kitchen Magician, Inc. has assembled the following data pertaining to its two most popular products Blender $ 23 17 48 65 25,000 Electric Mixer Direct

image text in transcribed

Kitchen Magician, Inc. has assembled the following data pertaining to its two most popular products Blender $ 23 17 48 65 25,000 Electric Mixer Direct material Direct labor Manufacturing overhead $48 per machine hour Cost if purchased from an outside supplier Annual demand (units) 30 96 110 38,000 Past experience has shown that the fixed manufacturing overhead component included in the cost per machine hour averages S35 Kitchen Magician's management has a policy of filling all sales orders, even if it means purchasing units from outside suppliers. Required 1. If 60,000 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 $23 per unit, how many units of each product should be manufactured? Purchased

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Markets Products And Marketing

Authors: David Parmerlee

1st Edition

0658001337, 978-0658001338

More Books

Students also viewed these Accounting questions