SProblem 14-44 Production Decisions; Limited Capacity (LO 14-5, 14-6)Kitchen Magician, Inc., has assembled the following data pertaining to its two most popular products.Direct materialDirect laborManufacturing overhead @ $52 per machine hourCost if purchased from an outside supplierAnnual demand (units)Required 1 Required 2Blender2519526727,000$Past experience has shown that the fixed manufacturing overhead component included in the cost per machine hour averages $40.Kitchen Magician's management has a policy of filling all sales orders, even if it means purchasing units from outside suppliers.Complete this question by entering your answers in the tabs below.ManufacturePurchase$Required:1. If 53,000 machine hours are available, and management desires to follow an optimal strategy, how many units of each productshould 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 $25 per unit, how many units ofeach product should be manufactured? Purchased?BlenderMixerMixer433210411532,000If 53,000 machine hours are available, and management desires to follow an optimal strategy, how many units of eachproduct should the firm manufacture? How many units of each product should be purchased?Required 2 > Problem 14-44 Production Decisions; Limited Capacity (LO 14-5, 14-6)Kitchen Magician, Inc., has assembled the following data pertaining to its two most popular products.Direct materialDirect laborManufacturing overhead @ $52 per machine hourCost if purchased from an outside supplierAnnual demand (units)Blender2519526727,000Past experience has shown that the fixed manufacturing overhead component included in the cost per machine hour averages $40.Kitchen Magician's management has a policy of filling all sales orders, even if it means purchasing units from outside suppliers.Complete this question by entering your answers in the tabs below.ManufacturePurchase$Required:1. If 53,000 machine hours are available, and management desires to follow an optimal strategy, how many units of each productshould 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 $25 per unit, how many units ofeach product should be manufactured? Purchased?BlenderMixerMixer433210411532,000Required 1 Required 2With all other things constant, if management is able to reduce the direct material for a mixer to $25 per unit, how manyunits of each product should be manufactured? Purchased? (Round your intermediate calculations to 2 decimal places.)< Required 1$

1 Blender Electric Mixer Manufacture 27000 13000 Purchase 0 19000 2 Blender…

Problem 14-44 Production Decisions; Limited Capacity (LO 14-5, 14-6) Kitchen Magician, Inc., 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) Required 1 Required 2 Blender 25 19 52 67 27,000 $ Past experience has shown that the fixed manufacturing overhead component included in the cost per machine hour averages $40. Kitchen Magician's management has a policy of filling all sales orders, even if it means purchasing units from outside suppliers. Complete this question by entering your answers in the tabs below. Manufacture Purchase $ Required: 1. If 53,000 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 $25 per unit, how many units of each product should be manufactured? Purchased? Blender Mixer Mixer 43 32 104 115 32,000 If 53,000 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? Required 2 >

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q