Brill, located in Port St. Lucie, Florida, produces two lines of electric toothbrushes: deluxe and standard. Because Brill 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 5,000 machine hours per month. The plant can manufacture either 58 standard electric toothbrushes or 28 deluxe electric toothbrushes per machine hour.
Requirements
1. Identify the constraining factor for Brill.
2. Prepare an analysis to show which product line to emphasize.

Transcribed Image Text:

Per Unit Deluxe Toothbrush Standard Toothbrush Sales price Variable costs Contribution margin Contribution margin ratio $ 80 20 S 60 75.0% $ 52 $ 37 712%