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Brann, located in Port St. Lucie, Florida, produces two lines of electric toothbrushes: deluxe and standard. Because Brann can sell all the toothbrushes it can
Brann, located in Port St. Lucie, Florida, produces two lines of electric toothbrushes: deluxe and standard. Because Brann 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: E (Click the icon to view the data.) After expansion, the factory will have a production capacity of 4,800 machine hours per month. The plant can manufacture either 55 standard electric toothbrushes or 35 deluxe electric toothbrushes per machine hour. Read the requirements. Data Table - X Requirement 1. Identify the constraining factor for Brann. Brann's constraint is machine hours i Requirements Requirement 2. Prepare a product mix analysis to show which product line to emphasize Per Unit Deluxe Standard Toothbrush Toothbrush 86 $ Deluxe Toothbrushes Standard Toothbrushes 1. Identify the constraining factor for Brann. 2. Prepare an analysis to show which product line to emphasize. $ Sales price Variable costs 24 $ Print Done Contribution margin Contribution margin ratio 62 $ 72.1% 37 68.5% Contribution margin per Decision Print Done
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