Process tep 1: Determine the contribution margin per constraining resource. Honda RYOBI EGO Sale Price $399 $299 $549 Variable Costs/unit $249 $99 5149 Contribution Margin/unit $150 $200 Hours/unit 2.5 14 CM/H/unit $50 580 360 Step 2: Calculate the current product mix Current Product Mix Honda RYOBI Units Produced 54 72 Contribution Margin/unit $190 Total contribution margins 14. Total EGO 24 $409 $9.600 150 $32.100 Step 3: Calculate the revised product mix Proposed Product Mix RYOBI Honda EGO Total Units Produced Contribution Margin/unit Hiatal contribution marginis 50 SO 0 0 SO $0 so 50 Difference $32, 100 Output What is your recommendation to Jake? What is the difference (s) between the alternatives? Ready Scenario You've discovered that Green Lawn Corp should keep the Lawn Mower division. Now you must figure out how they can make that division profitable. This can potentially be achieved by revising the product mix for the Lawn Mower division's three products - Honda, RYOBI, and EGO. However, there are certain constraints on supply (production) and demand. There are only 648 machine hours a month available in total to produce lawn mowers and maximum demand for each brand is 50 lawnmowers. Prats with constraints Input What type of decision is Jake requesting? Select the relevant information that will be included in your analysis, Revenue Variable costs Fixed costs Machine Hours Direct Labor Hours Customer Demand OBS Process Step 1: Determine the contribution margin per constraining resource. Honda RYOBI EGO Sale Price 5399 $299 $549 Variable Costs/unit $249 $99 $149 Contribution Margin/unit 50 5.000 Hours/unit 25 4 5 CM/hr/unit 1560 1580 589 $1991 Step 2: Calculate the current product mix Current Product Mix Honda RYOBI Units Produced 54 721 Contbution Martin/unit S01 5200 Total contribution man 5800 $1,400 Total 150 EGO 24 de $9.500 $32,100 Step Calculate the revised product mix Process tep 1: Determine the contribution margin per constraining resource. Honda RYOBI EGO Sale Price $399 $299 $549 Variable Costs/unit $249 $99 5149 Contribution Margin/unit $150 $200 Hours/unit 2.5 14 CM/H/unit $50 580 360 Step 2: Calculate the current product mix Current Product Mix Honda RYOBI Units Produced 54 72 Contribution Margin/unit $190 Total contribution margins 14. Total EGO 24 $409 $9.600 150 $32.100 Step 3: Calculate the revised product mix Proposed Product Mix RYOBI Honda EGO Total Units Produced Contribution Margin/unit Hiatal contribution marginis 50 SO 0 0 SO $0 so 50 Difference $32, 100 Output What is your recommendation to Jake? What is the difference (s) between the alternatives? Ready Scenario You've discovered that Green Lawn Corp should keep the Lawn Mower division. Now you must figure out how they can make that division profitable. This can potentially be achieved by revising the product mix for the Lawn Mower division's three products - Honda, RYOBI, and EGO. However, there are certain constraints on supply (production) and demand. There are only 648 machine hours a month available in total to produce lawn mowers and maximum demand for each brand is 50 lawnmowers. Prats with constraints Input What type of decision is Jake requesting? Select the relevant information that will be included in your analysis, Revenue Variable costs Fixed costs Machine Hours Direct Labor Hours Customer Demand OBS Process Step 1: Determine the contribution margin per constraining resource. Honda RYOBI EGO Sale Price 5399 $299 $549 Variable Costs/unit $249 $99 $149 Contribution Margin/unit 50 5.000 Hours/unit 25 4 5 CM/hr/unit 1560 1580 589 $1991 Step 2: Calculate the current product mix Current Product Mix Honda RYOBI Units Produced 54 721 Contbution Martin/unit S01 5200 Total contribution man 5800 $1,400 Total 150 EGO 24 de $9.500 $32,100 Step Calculate the revised product mix