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 $60 40 Direct Materials Direct Labour Manufacturing Overhead* Cost if purchased from outside supplier Annual Demand in units 160 Saw 110 90 320 380 220,000 200 200,000 * 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