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5 Barlow Company manufactures three products-A, B, and C. The selling price, variable costs, and contribution margin for one unit of each product follow Product

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Barlow Company manufactures three products-A, B, and C. The selling price, variable costs, and contribution margin for one unit of each product follow Product A Selling price 5180513005242 Variable expenses Direct materials 18 90 27 Other variable expenses 126 120 122 Total variable expenses 144 210 204 Contribution margin S 36 $ 90 5 36 Contribution margin ratio 205 301 154 The same raw material is used in all three products. Barlow Company has only 6.300 pounds of raw material on hand and will not be able to obtain any more of it for several weeks due to a strike in its supplier's plant Management is trying to decide which product(s) to concentrate on next week in filling its backlog of orders. The material costs $9 per pound Required: 1. Calculate the contribution margin per pound of the constraining resource for each product 2. Assuming that Barlow has unlimited demand for each of its three products, what is the maximum contribution margin the company can eam when using the 6,300 pounds of raw material on hand? 3. Assuming that Barlows estimated customer demand is 600 units per product line, what is the maximum contribution margin the company can eam when using the 6,300 pounds of raw material on hand? 4 A foreign supplier could furnish Barlow with additional stocks of the raw material at a substantial premium over the usual price Assuming Barlows estimated customer demand is 600 units per product line and that the company has used its 6.300 pounds of row material in an optimal fashion, what is the highest price Barlow Company should be willing to pay for an additional pound of materials? Complete this question by entering your answers in the tabs below. Hardt Hequired 2 Hequired Required Calculate the contribution margin per pound of the constraining resource for each product C Contribution margin per pound the constrained resource Required 2 >

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