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Brun, located in Port St. Lucie, Florida, produces two lines of electric toothbrushes: delure and standard. Because Brun can set all the toothbrushes it can
Brun, located in Port St. Lucie, Florida, produces two lines of electric toothbrushes: delure and standard. Because Brun can set 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 4,700 machine hours per month. The plant can manufacture either 60 standard electric toothbrushes or 26 deluxe electric toothbrushes per machine hour. Read the requirements Requirement 1. Identify the constraining factor for Brun Brun's constraint is machine hours Requirement 2. Prepare a product mix analysis to show which product line to emphasize Deluxe Standard Toothbrushes Toothbrushes Sales price per toothbrush Contribution margin per Decision Data table Per Unit Deluxe Standard Toothbrush Toothbrush 845 54 22 19 Sales price Variable costs Contribution margin Contribution margin ratio 35 62 5 72.8% 548% Print Done
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