How will the manager justify the decision to the chief

Reference no: EM133655469

Question: Outdoor Power Equipment (OPE) manufactures two types of lawn mowers: a riding lawn mower and a push lawn mower. Unit information is as follows. Riding Mower Push Mower Selling price per unit $1,000 $300 Variable cost per unit 625 200 Contribution margin per unit Contribution margin ratio Machine-hours required for manufacturing 5 hours 1 hour Contribution margin per machine-hour OPE has two significant decisions to make: 1. If OPE can manufacture and sell as many mowers of either type as it wants, which product should the Production Manager ask the factory workers to build? How will the manager justify the decision to the Chief Executive Officer (CEO)? 2. If the OPE can still sell as many mowers of either type as it can make but factory has only enough machines and staff to run the machines for 300 machine-hours for production each day, which product should the Production Manager ask the factory workers to build? How will the manager justify the decision to the Chief Executive Officer (CEO)?

Reference no: EM133655469

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