Question
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:
After expansion, the factory will have a production capacity of 4,300 machine hours per month. The plant can manufacture either 50 standard electric toothbrushes or 28 deluxe electric toothbrushes per machine hour.
Requirement 1. Identify the constraining factor for Britt. Britt's
constraint is
.
Requirement 2. Prepare a product mix analysis to show which product line to emphasize.
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| Deluxe | Standard |
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| Toothbrushes | Toothbrushes |
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Contribution margin per |
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Decision:
Emphasize the Britt standard electric toothbrush
Emphasize the Britt deluxe electric toothbrush
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