Bandin Dental Products, located in Moosonee, produces two lines of electric toothbrushes: Deluxe and Standard. Because Bandin
Question:
After expansion, the factory will have a production capacity of 4,200 machine hours per month. The plant can manufacture either 55 Standard electric toothbrushes or 25 deluxe electric toothbrushes per machine hour.
Requirements
1. Identify the constraining factor for Bandin.
2. Prepare an analysis to show which product line to emphasize.
Transcribed Image Text:
Per Unit Deluxe Regular Toothbrush Toothbrush $50 Sale price. Variable expenses. Contribution margin Contribution margin ratio. $98 16 34 68% 79
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Req 1 The constraining factor is machine hours of produc...View the full answer
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Related Book For
Managerial Accounting
ISBN: 978-0176223311
1st Canadian Edition
Authors: Karen Wilken Braun, Wendy Tietz, Walter Harrison, Rhonda Pyp
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