Kitchen magician, inc. Has assembled following data pertaining to its two most popular products.
Blender electric motors
Direct material $ 6 $11
Direct labor 4 9
Manufacturing
Overhead @ $16
Per machine hour 16 32
Cost if purchased
From an outside
Supplier 20 38
Annual demand 20000 28000

Past experience has shown that the fixed manufacturing overhead component included in the cost per machine hour averages $10. Kitchen magician's management has a policy of filling sales orders, even if means purchasing units from outside suppliers.
REQUIRED:
If 50000 machine hours are available, and management desires to follow an optimal strategy, how many units of each product firm should manufacture? How many units of each product should be purchased?