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Brik Products, located in Orlando, Florida, produces two lines of electric toothbrushes: Deluxe and Standard. Because Brik can sell all the toothbrushes it produces, the
Brik Products, located in Orlando, Florida, produces two lines of electric toothbrushes: Deluxe and Standard. Because Brik 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.) () Requirement 1. Identify the constraining factor for Brik. Brik's constraint is Requirement 2. Prepare an analysis to show which product line to emphasize. Data table Brik Products Product Mix Analysis Deluxe Standard Decision: Per Unit Deluxe Toothbrush $ Sales price 90 $ 22 Variable expenses. Contribution margin $ 68 $ Contribution margin ratio ...... Print 75.6% Done Standard Toothbrush 46 15 31 67.4% After expansion, the factory will have a production capacity of 4,700 machine hours per month. The plant can manufacture either 62 Standard electric toothbrushes or 28 Deluxe electric toothbrushes per machine hour. Requirements 1. Identify the constraining factor for Brik Products. 2. Prepare an analysis to show which product line to emphasize. X
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