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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

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 (10 marks)Engine typePower sawLawnmoweMotor bikeSelling priceKsh 80,000Ksh 100,000Ksh 125,000Variable cost per unitKsh 56,000Ksh 62,500Ksh 75,000Contribution per unitKsh 24,000Ksh 37,500Ksh 50,000Contribution margin percentage21110A30%37.5%40%Estimated daily demand in units606060Assume that only 600 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 2,5 and 5 machine hours produce one power saw, one lawnmower and one motor bike engine respectively.

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