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Buck Products, located in Atlanta, Georgia, produces two lines of electric toothbrushes: Deluxe and Standard. Because Buck can sell all the toothbrushes it produces, the
Buck Products, located in Atlanta, Georgia, produces two lines of electric toothbrushes: Deluxe and Standard. Because Buck 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: After expansion, the factory will have a production capacity of 4,300 machine hours per month. The plant can manufacture either 56 Standard electric toothbrushes or 22 Deluxe electric toothbrushes per machine hour. Requirements 1. Identify the constraining factor for Buck Products 2. Prepare an analysis to show which product line to emphasize. E: (Click the icon to view the data.) Requirement 1. Identify the constraining factor for Buck. Buck's constraint is Data Table Requirement 2. Prepare an analysis to show which product line to emphasize. Buck Products Product Mix Analysis Deluxe Standard Per Unit Deluxe Standard Toothbrush Toothbrush $ 84 $ 42 18 16 Sales price Variable expenses Contribution margin $ 66 $ 26 Contribution margin ratio 78.6% 61.9% Decision Print Done
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