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Bandin Dental produces two lines of electric toothbrushes Deluxe and Standard. Bolton can sell all of the toothbrushes it produces so the owners are expanding
Bandin Dental produces two lines of electric toothbrushes Deluxe and Standard. Bolton can sell all of the toothbrushes it produces so the owners are expanding the factory. They are deciding which product to emphasize. Deluxe Standard Selling price $90 $50 CM ratio 75% 68% After expansion, the factory will have a production capacity of 4200 machine hours per month. The factory can manufacture either 50 standard electric toothbrushes or 25 deluxe electric toothbrushes every 30 minutes. There is an unlimited demand for deluxe toothbrushes and a maximum monthly demand of 400,000 standard toothbrushes. Required: i) Prepare a monthly production plan that shows how much of each type of product the company should manufacture and sell in order to maximize the contribution margin. ii) Compute the expected monthly contribution margin
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