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Brill, located in Port St. Lucie, Florida, produces two lines of electric toothbrushes: deluxe and standard. Because Brill can sell all the toothbrushes it can
Brill, located in Port St. Lucie, Florida, produces two lines of electric toothbrushes: deluxe and standard. Because Brill 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 4,100 machine hours per month. The plant can manufacture either 58 standard electric toothbrushes or 35 deluxe electric toothbrushes per machine hour. Read the requirements Requirement 1. Identify the constraining factor for Brill. Brill's constraint is - X Data table Requirements 1. Identify the constraining factor for Brill. 2. Prepare an analysis to show which product line to emphasize. Per Unit Deluxe Standard Toothbrush Toothbrush $ 80 $ 48 22 19 Sales price Variable costs $ 58 $ 29 Contribution margin Contribution margin ratio 72.5% 60.4% Print Done
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