Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Brett Products, located in Philadelphia, Pennsylvania, produces two lines of electric toothbrushes: Deluxe and Standard. Because Brett can sell all the toothbrushes it produces, the
Brett Products, located in Philadelphia, Pennsylvania, produces two lines of electric toothbrushes: Deluxe and Standard. Because Brett can sell all 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 4, 100 machine hours per month. The plant can manufacture either 58 Standard electric toothbrushes or 23 Deluxe electric toothbrushes per machine hour. Requirements 1. Identify the constraining factor for Brett Products. 2. Prepare an analysis to show which product line to emphasize. Requirement 1. Identify the constraining factor for Brett Data Table Brett's constraint is Requirement 2. Prepare an analysis to show which product line to emphasize. Per Unit Brett Products Product Mix Analysis Deluxe Standard Contribution margin per unit Deluxe Standard Toothbrush Toothbrush Sales price..................... .............$ 82 $ 44 2215 Variable expenses............. Contribution margin....................$ 60 $ 29 Contribution margin ratio 73.2% 65.9% Multiply by: Units produced each hour Contribution margin per machine hour Multiply by: Capacity-Number of machine hours Total contribution margin at capacity Print Done Decision
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started