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 tooth-brushes 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 Standard Deluxe Toothbrush Toothbrush Sales price Variable costs Contribution margin Contribution margin ratio s 88 24 5 64 72.7% $ 52 16 S 36 69.2%