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Brett Dental Manufacturer, located in Burnaby, produces two lines of electric toothbrushes: Deluxe and Standard. Because Brett can sell all of the toothbrushes it produces,
Brett Dental Manufacturer, located in Burnaby, produces two lines of electric toothbrushes: Deluxe and Standard. Because Brett 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 2.500 machine hours per month. The plant can manufacture either 40 Standard electric toothbrushes or 18 Deluxe electric toothbrushes per machine hour. Requirements Identify the constraining factor for Brett. Prepare an analysis to show which product line to emphasize. Requirement 1. Identify the constraining factor for Brett. Brett's constraint is Requirement 2. Prepare an analysis to show which product line to emphasize Data Brett Product Mix Analysis Deluxe Standard Toothbrush Toothbrush Per Unit Deluxe Standard Toothbrush Toothbrush Sales price 9 185 $ 90 64 50 Variable expenses 121 S 40 Contribution margin 65.4% 44.4% Contribution margin ratio Decision: Print Done
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