Problem 14-44 Production Decisions; Limited Capacity (LO 14-5, 14-6) 10 Kitchen Magician, Inc., has assembled the following data pertaining to its two most popular products. 1.2 points Direct material Direct labor Manufacturing overhead @ $42 per machine hour Cost if purchased from an outside supplier Annual demand (units) Blender $ 20 14 42 62 22,eee Mixer $ 33 29 84 lez 32,880 eBook References Past experience has shown that the fixed manufacturing overhead component Included in the cost per machine hour averages $32 Kitchen Magician's management has a policy of filling all sales orders, even if it means purchasing units from outside suppliers. Required: 1. If 54,000 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 a mixer to $20 per unit, how many units of each product should be manufactured? Purchased? Complete this question by entering your answers in the tabs below. Required 1 Required 2 If 54,000 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 Mixer Manufacture Purchase Required 1 Required 2 With all other things constant, if management is able to reduce the direct material for a mixer to $20 per unit, how many units of each product should be manufactured? Purchased? (Round your intermediate calculations to 2 decimal places.) Blender Mixer Manufacture Purchase