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(Solved): PR 14-44 (Algo) Production Decisions; Limited Capacity (LO 14-5, 14-6) Kitchen Magician, Incorporat ...




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student submitted image, transcription available below
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. Past experience has shown that the fixed manufacturing overhead component included in the cost per machine hour averages . Kitchen Magician's management has a policy of flling all sales orders, even if it means purchasing units from outside suppliers. Required: 1. If 64,000 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 per unit, how many units of each product should be manufactured? Purchased? units of each product should be manufactured? Purchased? Complete this question by entering your answers in the tabs below. If 64,000 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? Complete this question by entering your answers in the tabs below. With all other things constant, if management is able to reduce the direct material for a electric mixer to per unit, how many units of each product should be manufactured? Purchased? Note: Round your intermediate calculations to 2 decimal places.


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Requirement 1:-

If 64,000 machine hours are available:-


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