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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:(Data Below)
Data Table - X Per Unit Deluxe Standard Toothbrush Toothbrush Sales price $ 48 82 $ 20 18 Variable costs $ 62 $ 30 Contribution margin Contribution margin ratio 75.6% 62.5% Print Done Requirements 1. Identify the constraining factor for Britt. 2. Prepare an analysis to show which product line to emphasize. Print Done After expansion, the factory will have a production capactiy of 4,200 machine hours per month. The plant can manufacture either 62 standard electric toothbrushes or 27 deluxe electric toothbrushes per machine hour.
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