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Kitchen Magician, Incorporated, has assembled the following data pertaining to its two most popular products. Direct material Direct labor Manufacturing overhead $52 per machine hour Cost if purchased from an outside supplier Annual demand (unita). Blender $ 21 14 52 71 37,000 Required 1 Mixer Past experience has shown that the fixed manufacturing overhead component included in the cost per machine hour averages $26. Kitchen Magician's management has a policy of filling all sales orders, even if it means purchasing units from outside suppliers. Required 2 $ 30 42 104 140 46,000 Required: 1. If 78,000 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 $21 per unit, how many units of each product should be manufactured? Purchased? Complete this question by entering your answers in the tabs below.

Kitchen Magician, Incorporated, has assembled the following data pertaining to its two most popular products. Direct material Direct labor Manufacturing overhead $52 per machine hour Cost if purchased from an outside supplier Annual demand (unita). Blender $ 21 14 52 71 37,000 Required 1 Mixer Past experience has shown that the fixed manufacturing overhead component included in the cost per machine hour averages $26. Kitchen Magician's management has a policy of filling all sales orders, even if it means purchasing units from outside suppliers. Required 2 $ 30 42 104 140 46,000 Required: 1. If 78,000 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 $21 per unit, how many units of each product should be manufactured? Purchased? Complete this question by entering your answers in the tabs below.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Complete this question by entering your answers in the tabs below. Required 1 Required 2 With all other things constant, if management is able to reduce the direct material for a electric mixer to $21 per unit, how many units of each product should be manufactured? Purchased? Note: Round your intermediate calculations to 2 decimal places. Manufacture Purchase Blender 46,000 Mixer 41,000 < Required 1 Required 2 >
Transcribed Image Text:Complete this question by entering your answers in the tabs below. Required 1 Required 2 With all other things constant, if management is able to reduce the direct material for a electric mixer to $21 per unit, how many units of each product should be manufactured? Purchased? Note: Round your intermediate calculations to 2 decimal places. Manufacture Purchase Blender 46,000 Mixer 41,000 < Required 1 Required 2 >
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. Direct material Direct labor Manufacturing overhead $52 per machine hour Cost if purchased from an outside supplier Annual demand (units) Blender $ 21 14 52 71 37,000 Mixer $ 30 42 104 140 46,000 Past experience has shown that the fixed manufacturing overhead component included in the cost per machine hour averages $26. Kitchen Magician's management has a policy of filling all sales orders, even if it means purchasing units from outside suppliers. Required 1 Required 2 Required: 1. If 78,000 machine hours are available, and management desires to follow an optimal strategy, how many uni should the firm manufacture? How many units of each product should be purchased? of each product 2. With all other things constant, if management is able to reduce the direct material for an electric mixer to $21 per unit, how many units of each product should be manufactured? Purchased? Complete this question by entering your answers in the tabs below.
Transcribed Image Text: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. Direct material Direct labor Manufacturing overhead $52 per machine hour Cost if purchased from an outside supplier Annual demand (units) Blender $ 21 14 52 71 37,000 Mixer $ 30 42 104 140 46,000 Past experience has shown that the fixed manufacturing overhead component included in the cost per machine hour averages $26. Kitchen Magician's management has a policy of filling all sales orders, even if it means purchasing units from outside suppliers. Required 1 Required 2 Required: 1. If 78,000 machine hours are available, and management desires to follow an optimal strategy, how many uni should the firm manufacture? How many units of each product should be purchased? of each product 2. With all other things constant, if management is able to reduce the direct material for an electric mixer to $21 per unit, how many units of each product should be manufactured? Purchased? Complete this question by entering your answers in the tabs below.
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