Brik, located in Port St. Lucie, Florida, produces two lines of electric toothbrushes: deluxe and standard. Because Brik can sell all the toothbrushes it can produce, 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 60 standard electric toothbrushes or 28 deluxe electric toothbrushes per machine hour.
Requirements
1. Identify the constraining factor for Brik.
2. Prepare an analysis to show which product line toemphasize.

Transcribed Image Text:

Per Unit Deluxe Standard Toothbrush Toothbrush 52 Sale price Variable expenses 88 $ 24 16 Contribution margin 64 $ 36 Contribution margin ratio 69.2% 72.7%