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Brent Products, located in Ann Arbor, Michigan, produces two lines of After expansion, the factory will have a production capacity of 4,700 electric toothbrushes: Deluxe
Brent Products, located in Ann Arbor, Michigan, produces two lines of After expansion, the factory will have a production capacity of 4,700 electric toothbrushes: Deluxe and Standard. Because Brent can sell machine hours per month. The plant can manufacture either 60 all the toothbrushes it produces, the owners are expanding the plant. Standard electric toothbrushes or 20 Deluxe electric toothbrushes per They are deciding which product line to emphasize. To make this machine hour. decision, they assemble the following data: Requirements (Click the icon to view the data.) 1. Identify the constraining factor for Brent Products. 2. Prepare an analysis to show which product line to emphasize. Requirement 1. Identify the constraining factor for Brent. Brent's constraint is machine hours Requirement 2. Prepare an analysis to show which product line to emphasize. Brent Products Product Mix Analysis Deluxe Standard Per Unit Deluxe Standard Toothbrush Toothbrush Sales price 88 $ 48 24 18 Variable expenses Contribution margin $ 64 $ 30 Contribution margin ratio .. 72.7% 62.5%
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