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P25-24A Making product mix decisions 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: Per Unit Deluxe Standard Toothbrush Toothbrush Sales price $ 86 $ 56 Variable costs Contribution margin $ 66 $ 38 Contribution margin ratio 76.7% 67.9% 86 20 18 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. Requirements 1. Identify the constraining factor for Brinn. 2. Prepare an analysis to show which product line to emphasize. ADDITIONAL REQUIREMENTS FOR P25-24A: 3) Assume that Brinn has decided not to put all of its production towards a single product, and will only allocate a maximum of 3,000 machine hours to any individual product. Prepare a market limitation analysis (similar to Exhibit 25-12 or Slide 31) showing the maximum profit under this condition. 4) Prepare another market limitation analysis, this time assuming that Brinn can only sell a maximum of 140,000 units of any individual product (standard or deluxe)

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