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Britt Products, located in Orlando, Florida, produces two lines of electric toothbrushes: Deluxe and Standard. Because Britt can sell all the toothbrushes it produces,
Britt Products, located in Orlando, Florida, produces two lines of electric toothbrushes: Deluxe and Standard. Because Britt can sell all the toothbrushes it produces, 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 4,300 machine hours per month. The plant can manufacture either 62 Standard electric toothbrushes or 27 Deluxe electric toothbrushes par machine hour. Requirements 1. Identify the constraining factor for Britt Products. 2. Prepare an analysis to show which product line to emphasize. Requirement 1. Identify the constraining factor for Britt. Britt's constraint is Requirement 2. Proaparaan analysis to show which product line to emphasize Britt Products Product Mix Analytic Decision: Deluxe Standard Data table Per Unit Deluxe Toothbruch Standard Toothbrush Sales price 82 $ 17 48 19 Variable expenses Contribution margin 65 $ 29 Contribution margin ratio 79.3% 60.4% Print Done
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