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. Process Step 1: Determine the contribution margin per constraining resource. Honda RYOBI EGO Sale Price $399 $299 $549 Variable Costs/unit $249 $99 $149 Contribution Margin/unit sol SO Hours/unit 2.5 5 CM/Hc/unit Sol So SO 4 Step 2: Calculate the current product mix. Current Product Mix Honda RYOBI Units Produced 54 72 Contribution Margin/unit SO SO Total contribution margin (5) SO so EGO Total 150 24 SO SO SO Step 3: Calculate the revised product mix. Proposed Product Mix Honda RYOBI EGO Units Produced ol 0 Contribution Margin/unit sol so Total contribution margin () SO SO Total 59 SO 0 0 SO Difference $0