Question

Brett Products, located in Buffalo, New York, produces two lines of electric toothbrushes: Deluxe and Standard. Because Brett 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: E: (Click the icon to view the data.) After expansion, the factory will have a production capacity of 4,700 machine hours per month. The plant can manufacture either 55 Standard electric toothbrushes or 24 Deluxe electric toothbrushes per machine hour. Requirements 1. Identify the constraining factor for Brett Products 2. Prepare an analysis to show which product line to emphasize. Requirement 1. Identify the constraining factor for Brett. Brett's constraint is i Data Table - X Requirement 2. Prepare an analysis to show which product line to emphasize. Brett Products Product Mix Analysis Deluxe Standard Per Unit Deluxe Standard Toothbrush Toothbrush Sales price ....................$ 80 $ Variable expenses........... 24 Contribution margin 56 $ 36 Contribution margin ratio 69.2% .......... Decision: Print Done

Answer 1

1.

Brett's constraint is machine hours

2.

Brett Products Product Mix Analysis
	Deluxe	Standard
Sale price	$80	$52
Variable expenses	24	16
Contribution margin	56	36
Units per machine hour	24	56
Contribution margin per hour	$1,344	$2,016

Decision : Standard product line should be emphasized.