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Brinn, located in Port St . Lucie, Florida, produces two lines of electric toothbrushes: deluxe and standard. Because Brinn can sell all the toothbrushes it
Brinn, located in Port St Lucie, Florida, produces two lines of electric toothbrushes: deluxe and standard. Because Brinn 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:
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After expansion, the factory will have a production capacity of machine hours per month. The plant can manufacture either standard electric toothbrushes or deluxe electric toothbrushes per machine hour.
Read the requirements.
Requirement Identify the constraining factor for Brinn.
Brinn's constraint is machine hours
Requirement Prepare a product mix analysis to show which product line to
tabletableDeluxeToothbrushesToothbrushesContribution margin per toothbrush,Toothbrushes produced each hour,Contribution margin per machine hour,
Data table
tableSales price,Per UnittableStandardToothbrush$$Variable costs,,Contribution margin,$$Contribution margin ratio,,
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