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University Of Richmond Operations And Supply Chain Management Assignment Help - Limited Capacity

Question - Kitchen Magician, Inc. has assembled the following data pertaining to its two most popular products. Blender Electric Mixer Direct Material $6.00 $11.00 Direct Labor $4.00 $9.00 Manufacturing overhead @ 16 per machine hour $16.00 $32.00 Cost if purchasing from an outside supplier $20.00 $38.00 Annual Demand (Units) 20,000 28,000 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 all sales orders, even if it means purchasing from outside suppliers. 1. If 50,000 machine hours are available, and management desires to follow an optimal strategy, how many units of each product sho ...Read More

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