Britt, located in Port St. Lucie, Florida, produces two lines of electric toothbrushes: deluxe and standard. Because Britt 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: E (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 50 standard electric toothbrushes or 23 deluxe electric toothbrushes per machine hour. Read the requirements. Requirement 1. Identify the constraining factor for Britt. Britt's constraint is Requirements 1. Identify the constraining factor for Britt 2. Prepare an analysis to show which product line to emphasize. Print Done

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Britt, located in Port St. Lucie, Florida, produces two lines of electric toothbrushes: deluxe and standard. Because Britt 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:
E (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 50 standard electric
toothbrushes or 23 deluxe electric toothbrushes per machine hour.
Read the requirements.
Requirement 1. Identify the constraining factor for Britt.
Britt's constraint is
Requirements
1. Identify the constraining factor for Britt.
2. Prepare an analysis to show which product line to emphasize.
Print
Done
Data Table
Per Unit
Deluxe
Standard
Toothbrush
Toothbrush
Sales price
$4
82 $
52
25
18
Variable costs
24
57 $
34
Contríbution margin
Contribution margin ratio
69.5%
65.4%
Transcribed Image Text:Britt, located in Port St. Lucie, Florida, produces two lines of electric toothbrushes: deluxe and standard. Because Britt 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: E (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 50 standard electric toothbrushes or 23 deluxe electric toothbrushes per machine hour. Read the requirements. Requirement 1. Identify the constraining factor for Britt. Britt's constraint is Requirements 1. Identify the constraining factor for Britt. 2. Prepare an analysis to show which product line to emphasize. Print Done Data Table Per Unit Deluxe Standard Toothbrush Toothbrush Sales price $4 82 $ 52 25 18 Variable costs 24 57 $ 34 Contríbution margin Contribution margin ratio 69.5% 65.4%
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