Kitchen Magician, Inc. has assembled the following data pertaining to its two most popular products. Blender Electric Mixer Direct material 22 37 Direct labor 16 29 Manufacturing overhead @ $46 per machine hour Cost if purchased from an outside supplier Annual demand (units) 46 92 64 109 24,000 36,000 Past experience has shown that the fixed manufacturing overhead component included in the cost per machine hour averages $34. Kitchen Magician's management has a policy of filling 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? 2. With all other things constant, if management is able to reduce the direct material for an electric mixer to $22 per unit, how many units of each product should be manufactured? Purchased? Required 1 Required 2 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? Blender Electric Mixer Manufacture Purchase Required 1 Required 2 With all other things constant, if management is able to reduce the direct material for an electric mixer to $22 per unit, how many units of each product should be manufactured? Purchased? Blender Electric Mixer Manufacture Purchase