Kawasaki Company Ltd manufactures a broad range of engines for commercial products. At its Kenyan...
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Kawasaki Company Ltd manufactures a broad range of engines for commercial products. At its Kenyan plant it assembles power saw engines and lawnmower eng Information on these products is as follows:SEE ATTACHMENTRequired:Advise on the product mix that Kawasaki should produce during the period marksEngine typePower sawLawnmoweMotor bikeSelling priceKsh Ksh Ksh Variable cost per unitKsh Ksh Ksh Contribution per unitKsh Ksh Ksh Contribution margin percentageAEstimated daily demand in unitsAssume that only machine hours are available daily for assembling engines, additional capacity can not be obtained in the short run. The limiting factor is machine hours. It takes and machine hours produce one power saw, one lawnmower and one motor bike engine respectively.
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