Question

Brik Products, located in Philadelphia, Pennsylvania, produces two lines of electric toothbrushes: De luxe and Standard. Because Brik 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 4,900 machine hours per month. The plant can manufacture either 58 Standard electric toothbrushes or 27 Deluxe electric toothbrushes per machine hour Requirements 1. Identify the constraining factor for Brik Products 2. Prepare an analysis to show which product line to emphasize PBB Click the icon to view the data) Requirement 1. Identify the constraining factor for Brik. Brik's constraint is Requirement 2.P N which product line to emphasize direct materials Products labor hours Mix Analysis machine hours

Answer 1

Constraint is machine hours since limited
	Deluxe	Standard
Sales price per unit	84	54
Variable cost per unit	22	16
Contribution margin per unit	62	38
Units per machine hour	27	58
Contribution margin per hour	1674	2204
Decision: Standard should be emphasized as contribution margin per hour is more