Question

Brent Products, located in Philadelphia, Pennsylvania, 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 4,900 machine hours per month. The plant can manufacture either 56 Standard electric toothbrushes or 27 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.

help with requirment 2

Answer 1

Brent Products
Product Mix Analysis
	Deluxe	Standard
Sales price	82	50
Variable expenses	19	18
Contribution margin per unit	63	32
Machine hour per unit	1/27	1/56
Contribution margin per machine hour	63x27 = 1,701	32x56 = 1,792

In 1 machine hour, 27 Deluxe tooth brush can be made

machine hour per unit of electric toothbrush= 1/27

In 1 machine hour, 56 standard toothbrush can be made

Machine hour per unit of standard tooth brush = 1/56

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