Problem 4- Make/Buy + Scarce Resources Stewart Industries has been producing two bearings, components B12 and B18, for use in production. Data regarding these two components follow: Machine hours required per unit Standard cost per unit: Direct materials Direct labor Manufacturing overhead Variable* Fixed** B12 B18 Ex 3.0 $ 2.25 $ 3.75 4.00 4.50 2.00 2.25 3.75 4.50 $12.00 $15.00 * Variable manufacturing overhead is applied on the basis of direct labor hours. * Fixed manufacturing overhead is applied on the basis of machine hours. Stewart's annual requirement for these components is 8,000 units of B12 and 11,000 units of B18. Recently, Stewart's management decided to devote additional machine time to other product lines, with the result that only 41,000 machine hours per year can be dedicated to the production of the bearings. An outside company has offered to sell Stewart the annual supply of the bearings at prices of $11.25 per unit for B12 and $13.50 per unit for B18. Stewart wants to schedule the otherwise idle 41,000 machine hours to produce bearings so that the company can minimize its costs (maximize its net benefits). Required: Determine the combination of purchasing and manufacturing that will maximize benefits.