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I have provided answers. I only wish for explanations on how to achieve the answers. Thank you! 4. Brinn, located in Port St. Lucie, Florida,
I have provided answers. I only wish for explanations on how to achieve the answers.
Thank you!
4. Brinn, located in Port St. Lucie, Florida, produces two lines of electric toothbrushes: deluxe and standard. Because Brinn 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: (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 50 standard electric toothbrushes or 35 deluxe electric toothbrushes per machine hour Read the requirements? Requirement 1. Identify the constraining factor for Brinn. Brinn's constraint is machine hours. Requirement 2. Prepare a product mix analysis to show which product line to emphasize Deluxe Standarod Toothbrushes produced each hour Contribution margin per toothbrush Contribution margin per machine hour Toothbrushes Toothbrushes 50 38 1,900 35 2,310 $ Decision: Emphasize the Brinn deluxe electric toothbrush 1: Data Table Per Unit Deluxe Standarod Toothbrush Toothbrush 86 $ 20 Sales price Variable costs Contribution margin Contribution margin ratia 56 18 38 67.9% 767%Step by Step Solution
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