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Brent Products, located in Boulder, Colorado, produces two lines of electric toothbrushes: Deluxe and Standard. Because Brent can sell all the toothbrushes it produces, the
Brent Products, located in Boulder, Colorado, produces two lines of electric toothbrushes: Deluxe and Standard. Because Brent 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 4,400 machine hours per month. The plant can manufacture either 58 Standard electric toothbrushes or 22 Deluxe electric toothbrushes per machine hour. Requirements 1. Identify the constraining factor for Brent Products 2. Prepare an analysis to show which product line to emphasize. Requirement 1. Identify the constraining factor for Brent. Data table Brent's constraint is Per Unit Deluxe Standard Toothbrush Toothbrush 96 $ 46 Sales price 20 17 Variable expenses Contribution margin Contribution margin ratio ...... 76 $ 29 79.2% 63% 1 Print Done
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