you need to maximize contribution margin per machine. to calculate CM you must use variable overhead so u must resuce overhead to $6 per blender and $12 per electric mixer.

Problems All applicable Problems are wailable in Connect Kitchen Male Inc home the following data ning toi par in connect Electric M Problem 14.44 Predaction Deconstitd Capacty LO 14-5,145) Directa Dec Manufacturing peaches how Cesti puchondrom outler Ademand Blender $6 4 15 20 20.000 2 12 38 25,000 Past experience has shown that the fixed manufacturing overhead component included in the cout per machine hour averages SIO Kitchen Magician's management has a policy of filling all sales anders even if it means purchasing units from outside supplies Required 1. 150,000 machine boons are available, and management desires to follow an optimal strategy, bow 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 mise to 56 per how many units of each product should be cured? Purchased