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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question

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
Data Table
direct materials
labor hours
Per Unit
machine hours
Deluxe
Standard
Toothbrush
Toothbrush
82 $
52
Sales price
25
18
Variable costs
57 $
34
Contribution margin
69 5%
65.4%
Contribution margin ratio
Print
Done
Requirements
1. Identify the constraining factor for Britt.
2. Prepare an analysis to show which product line to emphasize.
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