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Brann Dental Manufacturer, located in Cambridge, produces two lines of electric toothbrushes: Deluxe and Standard. Because Brann can sell all of the toothbrushes it produces,
Brann Dental Manufacturer, located in Cambridge, produces two lines of electric toothbrushes: Deluxe and Standard. Because Brann can sell all of 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.) After expansion, the factory will have a production capacity of 3,400 machine hours per month. The plant can manufacture either 42 Standard electric toothbrushes or 16 Deluxe electric toothbrushes per machine hour. Requirements 1. Identify the constraining factor for Brann. 2. Prepare an analysis to show which product line to emphasize. - Requirement 1. Identify the constraining factor for Brann. Brann's constraint is Requirement 2. Prepare an analysis to show which product line to emphasize. Brann Product Mix Analysis Data Deluxe Toothbrush Standard Toothbrush Per Unit Deluxe Standard Toothbrush Toothbrush 215 $ 135 S Sales price Variable expenses 70 54 Contribution margin S 145 $ 81 Decision: 67.4% 60% Contribution margin ratio Print Done
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