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Britt, located in Port St. Lucie, Florida, produces two lines of electric toothbrushes: deluxe and standard. Because Britt can sell all the toothbrushes it can
Britt, located in Port St. Lucie, Florida, produces two lines of electric toothbrushes: deluxe and standard. Because Britt 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 4,800 machine hours per month. The plant can manufacture either 58 standard electric toothbrushes or 28 deluxe electric toothbrushes per machine hour. Read the requirements. Requirement 1. Identify the constraining factor for Britt. Britt's constraint is * Data Table - X direct materials labor hours Per Unit machine hours Deluxe Toothbrush Standard Toothbrush 84 $ 58 15 1. Identify the constraining factor for Britt. 2. Prepare an analysis to show which product line to emphasize. Sales price Variable costs 22 62 $ 43 Print Done Contribution margin Contribution margin ratio 73.8% 74.1% Click to select your answer(s) and then click Check Answer. Print Done 2 parts Clear All Check Answer remaining
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