TI Blender Electric Mixer $ $ Direct material 15 28 Direct labor 36 Manufacturing overhead@ $40 per machine hour Cost if purchased from an outside supplier Annual demand (units) 40 80 62 130 31,000 40,000 Past experience has shown that the fixed manufacturing overhead component included in the cost per machine hour averages $20. Kitchen Magician's management has a policy of filling all sales orders, even if it means purchasing units from outside suppliers. Required: 1. If 66,000 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 $15 per unit, how many units of each product should be manufactured? Purchased