Breit, located in San Antonio, Texas, produces two lines of electric toothbrushes: deluxe and standard. Because Breit can sell all the toothbrushes it can produce, the owners are expanding the plant. They are deciding which product line to emphasize. To make this decision, they assemble the following data:

After expansion, the factory will have a production capacity of 4,300 machine hours per month. The plant can manufacture either 65 standard electric toothbrushes or 27 deluxe electric toothbrushes per machine hour.
Requirements
1. Identify the constraining factor for Breit.
2. Prepare an analysis to show which product line the company shouldemphasize.

Transcribed Image Text:

Per Unit Deluxe Standard Toothbrush Toothbrush 90 $ Sale price 50 Variable expenses 23 18 Contribution margin 67 $ 32 Contribution margin ratio 74.4% 64.0%