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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 can
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: (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 50 standard electric toothbrushes or 35 deluxe electric toothbrushes per machine hour. Read the requirements. Requirement 1. Identify the constraining factor for Brinn. Brinn's constraint is Requirement 2. Pre to show which product line to emphasize. Deluxe Standard direct materials Toothbrushes Toothbrushes labor hours machine hours Contribution margin Decision: Contribution margin per toothbrush Fixed cost per toothbrush Sales price per toothbrush o lines of electric toothbrushes: deluxe and s Toothbrushes produced each hour show which product line to emphasize. Deluxe Standard Variable cost per toothbrush hbrushes Toothbrushes Contribution margin per Decision: Contributi Decision: Doluva Standard ushes Emphasize the Brinn deluxe electric toothbrush Emphasize the Brinn standard electric toothbrush Data table Per Unit Deluxe Toothbrush Standard Toothbrush Sales price EA $ 86 $ 56 20 18 Variable costs $ 66 $ 38 Contribution margin Contribution margin ratio 76.7% 67.9% Print Done
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