Brann Products, located in Ann Arbor, Michigan, produces two lines of electric toothbrushes: Deluxe and Standard. Because Brann 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 4,000 machine hours per month. The plant can manufacture either 65 Standard electric toothbrushes or 25 Deluxe electric toothbrushes per machine hour.
Requirements
1. Identify the constraining factor for Brann Products.
2. Prepare an analysis to show which product line to emphasize.

Transcribed Image Text:

Per Unit Deluxe Toothbrush Regular Toothbrush Sales price. Variable expenses. Contribution margin.. Contribution margin ratio $90 $52 17 $73 18 $34 65.4% 81.1%