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Unformatted text preview: $6 Machine hours equired per unit 1 2 Cost savings per machine hour if manufactured $4 / 1 hour $4 $6 / 2 hour $3 ( Therefore each machine hour devoted to the production of Blender saves the company more than a machine hour devoted to Electric Mixer production Machine hours available 50,000 Machine Hours needed to manufacture 20000 Blenders 20,000 Remaining machine hours 30,000 Number of Electric Mixers to be produced 15,000 Conclusion: Manufacture 20,000 blenders Manufacture 15,000 mixers Purchase- blenders Purchase 13,000 mixers...
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- Spring '12