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Buck Products, located in Charlotte, North Carolina, produces two lines of electric toothbrushes: Deluxe and Standard. Because Buck can sell all the toothbrushes it produces,
Buck Products, located in Charlotte, North Carolina, 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: (Click the icon to view the data.) After expansion, the factory will have a production capacity of 4, 100 machine hours per month. The plant can manufacture either 65 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. A Data Table Per Unit Deluxe Standard Toothbrush Toothbrush 82 $ 48 Sales price. 21 Variable expenses. Contribution margin................$ Contribution margin ratio. $ 61 74.4% 66.7% Requirement 1. Identify the constraining factor for Buck. Buck's constraint is Requirement 2. Prepare an analysis to show which product line to emphasize. Buck Products Product Mix Analysis Deluxe Standard Decision
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