Makita Inc. manufactures a variety of battery-powered hand tools. The company has assembled the following data pertaining to its two most popular products: Drill Saw Direct Materials $60 110 Direct Labour 40 90 Manufacturing Overhead* 160 320 Cost if purchased from outside supplier 200 380 Annual Demand in units 200.000 220,000 * The manufacturing overhead is applied at a rate of $80 per machine hour used in production. Twenty five percent of the MOH is variable in nature and the remaining seventy five percent is fixed. Makita only has 500,000 hours of machine time available for making these two tools this year. When Makita cannot satisfy the demand for its products, the company will buy units from an outside supplier. Required: How should Makita use this year's limited supply of machine hours? How many of each product should they make themselves and how many units should be purchased from the outside supplier