Brun Products, located in Ann Arbor, Michigan, produces two lines of electric toothbrushes: Deluxe and...
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Brun Products, located in Ann Arbor, Michigan, produces two lines of electric toothbrushes: Deluxe and Standard. Because Brun can sell all 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: After expansion, the factory will have a production capacity of 4,200 machine hours per month. The plant can manufacture either 65 Standard electric toothbrushes or 21 Deluxe electric toothbrushes per machine hour. Requirements 1. Identify the constraining factor for Brun Products 2. Prepare an analysis to show which product line to emphasize. (Click the icon to view the data.) Requirement 1. Identify the constraining factor for Brun Data Table Brun's constraint is machine hours Requirement 2. Prepare an analysis to show which product line to emphasize. Brun Products Per Unit Deluxe Standard Toothbrush Toothbrush Product Mix Analysis Deluxe Standard Sales price $ 98 $ 45 19 15 Variable expenses Contribution margin $ 79 $ 30 Contribution margin ratio 80.6% 66.7% Print Done
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