PR 14-44 (Algo) Production Decisions; Limited Capacity (LO 14-5, 14-6) Kitchen Magician, Incorporated, has assembled the following data pertaining to its two most popular products. Past experience has shown that the fixed manufacturing overhead component included in the cost per machine hour averages $40. Kitchen Magician's manogement has a policy of filling all sales orders, even If it means purchasing units from outside suppliers. Required: 1. If 53,000 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 $25 per unit, how many units of each product should be manufactured? Purchased? Complete this question by entering your answers in the tabs below. If 53,000 machine hours are avallable, and management desires to follow an optimal strategy, how many units of each product should the firm manufacture? How manv units of esch oroduct should be ourchased? Past experience has shown that the fixed manufacturing overhead component included in the cost per machine hour averages $40. Kitchen Magician's management has a policy of filling all sales orders, even if it means purchasing units from outside suppliers. Required: 1. If 53,000 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 $25 per unit, how many units of each product should be manufactured? Purchased? Complete this question by entering your answers in the tabs below. If 53,000 machine hours are avalable, and management desires to follow an optimal strategr, how mamy units of each product should the firm manufacture? How many units of each product should be purchased? Past experience has shown that the fixed manufacturing overhead component included in the cost per machine hour averages $40. Kitchen Magician's management has a policy of filling all sales orders, even if it means purchasing units from outside suppliers. Required: 1. If 53,000 machine hours are available, and management desires to follow an optimal strategy. how many units of each product should the firm manufocture? 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 $25 per unit, how many units of each product should be manufactured? Purchased? Complete this question by entering your answers in the tabs below. With all other things constant, if management is able to reduce the direct materint for a electric mixer to $25 per unit, how many units of each product should be manufactured? purchased? Note: Round your intermediate calculations to 2 decimal places
