Stewart Industries has been producing two bearings, components B12 and B18, for use in production.

Stewart’s annual requirement for these components is 8,000 units of B12 and 11,000 units of B Recently, Stewart’s management decided to devote additional machine time to other product lines resulting in only 41,000 machine hours per year that can be dedicated to the production of the bearings. An outside company has offered to sell Stewart the annual supply of the bearings at prices of $11.25 for B12 and $13.50 for B Stewart wants to schedule the otherwise idle 41,000 machine hours to produce bearings so that the company can minimize its costs (maximize its net benefits). Note 1:? Variable manufacturing overhead is applied on the basis of direct labor hours. Note 2:? Fixed manufacturing overhead is applied on the basis of machine hours.Purchasing 4,800 units of B12 and manufacturing the remaining bearings. Stewart will maximize its net benefits by