Bassett Dental Manufacturer, located in Airdrie, produces two lines of electric toothbrushes: Deluxe and Standard....
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Bassett Dental Manufacturer, located in Airdrie, produces two lines of electric toothbrushes: Deluxe and Standard. Because Bassett can sell all of the toothbrushes it produces, 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 2,700 machine hours per month. The plant can manufacture either 50 Standard electric toothbrushes or 20 Deluxe electric toothbrushes per machine hour. Requirements 1. Identify the constraining factor for Bassett. 2. Prepare an analysis to show which product line to emphasize. Requirement 1. Identify the constraining factor for Bassett. Data Bassett's constraint is machine hours. Requirement 2. Prepare an analysis to show which product line to emphasize. Bassett Per Unit Deluxe Standard Toothbrush Toothbrush Product Mix Analysis Sales price 90 ................. $ 190 $ Deluxe Toothbrush Standard Toothbrush 64 48 Variable expenses.......... $ 126 $ 190 42 Contribution margin -64 66.3% 46.7% Contribution margin ratio Print Done Decision: Emphasize the Bassett Deluxe electric toothbrushes. Choose from any list or enter any number in the input fields and then continue to the next question, MacBook Air
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