Chapter 10 Principal Managerial Accounting

Data table Per Unit Deluxe Standard Toothbrush Toothbrush $ 90 $ 54 Sales price Variable costs 21 18 $ 69 $ 36 Contribution margin Contribution margin ratio 76.7% 66.7% - Requirements 1. Identify the constraining factor for Brill. 2. Prepare an analysis to show which product line to emphasize. 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: (Click the icon to view the data.) After expansion, the factory will have a production capacity of 4,000 machine hours per month. The plant can manufacture either 60 standard electric toothbrushes or 26 deluxe electric toothbrushes per machine hour. Read the requirements. Requirement 1. Identify the constraining factor for Brill. Brill's constraint is Requirement 2. Prepare a product mix analysis to show which product line to emphasize. Deluxe Standard Toothbrushes Toothbrushes Contribution margin per Decision