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Brik, located in Port St. Lucie, Florida, produces two lines of electric toothbrushes: deluxe and standard. Because Brik can sell all the toothbrushes it
Brik, located in Port St. Lucie, Florida, produces two lines of electric toothbrushes: deluxe and standard. Because Brik 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: (Click the icon to view the data.) After expansion, the factory will have a production capacity of 4,500 machine hours per month. The plant can manufacture either 50 standard electric toothbrushes or 24 deluxe electric toothbrushes per machine hour. Read the requirements. Requirement 1. Identify the constraining factor for Brik. Brik's constraint is Requirement 2. Prepare a product mix analysis to show which product line to emphasize. Contribution margin per Decision: Deluxe Standard Toothbrushes Toothbrushes Requirements 1. Identify the constraining factor for Brik. 2. Prepare an analysis to show which product line to emphasize. Print Done Data table Per Unit Deluxe Toothbrush Standard Toothbrush Sales price $ 82 $ 23 58 17 Variable costs $ 59 $ 41 Contribution margin Contribution margin ratio 72.0% 70.7% Print Done
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