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Agee Products, located in Peoria, Arizona, produces two lines of electric toothbrushes Deluxe and Stand Because Agee can sell all the toothbrushes it produces, the

Agee Products, located in Peoria, Arizona, produces two lines of electric toothbrushes Deluxe and Stand Because Agee can sell all the toothbrushes it produces, the owners are expanding the plant. They are deciding which product line to emphasize. To make this decision they assemble the following data (Click the icon to view the data An the factory will have a production capacity of 4.700 machine hours per month. The can manufacturer 50 Standard electric toothbrushes or 23-Delectus perche hour Requirements 1. identify the constraining factor for Ages Produc 2. Prepare an analysis to show which product Requirement 1. Identify the constraining factor for Age Age's constraint is Requirement 2. Prapare an analysis to show which product line to emphasize Agee Products Decision Data table Product Mix Analysis Sales price Deluxe Standard Contribution margin Contribution margin ratio..... Per Unit Delane Standant Toothbrush Torsh 905 197 19 $ 121 BLIN 587% Print Done x Agee Products, located in Peoria, Arizona, produces two ines of electric toothbrushes: Deluxe and Standard Because Agee can set all the toothbrushes it produces, the caners are expanding the plant. They are deciding which product line to emphasize. To make this decision, they assemble the following data Click the icon to view the data) After expansion, the factory will have a production capacity of 4,700 machine hours per month. The plant can manufacture either 56 Standard electric toothbrushes or 28 Deluxe electric soothbrushes per machin nour Requirements 1. Idently the constraining factor for Agee Products 2. Prepare an analysis to show which product into emphasize Requirement 1. Idensity the constraining factor for Age Agee's constraint is direct materials Requirement 2. Prepare an analysis to show which product line to emphasize Agee Products Product Mix Analysis Deluxe Standard Multiply by Capacity-Direct labor hours available Contribution margin per direct materials used Multiply by Capacity-Direct materials used Contribution margin per unit Decision Emphasize the Agee Standard electric toohbrushes 06 77 51 56 5 Data table Por Unit De Standard Toothbrush Toothbrush 90$ 46 Sales price 17 Variable expenses 755 27 Contribution margin Contribution margin ratio 81.1% 58.7% Print Done

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