6 0 Exercise 13-8 (Algo) Volume Trade-Off Decisions (LO13-5, LO13-6] Barlow Company manufactures three products-A, B, and C. The selling price, variable costs, and contribution margin for one unit of each product folow Product A Selling price Variable expenses Direct materials other variable expenses Contribution margie Total variable expenses Contribution margin ratin $100 $240 $220 18 12 36 126 144 168 $36 172 20% 30% 154 23% The same raw material is used in all three products. Barlow Company has only 5,400 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 materiel costs $6 per pound Required 1 Calculate the contribution margin per pound of the constraining resource for each product 2. Assuming b een ducts, what is the maximum contribution margin the company can 3. Assuming Barlow's estimated customer demand is 600 units per product line, what is the maximum contribution margin the company can earn when using the 5,400 pounds of raw material on hand? 4. A foreign supplier could furnish Bariow with additional stocks of the raw inaterial at a substantial premium over the usual price Assuming Barlow's estimated customer demand is 600 units per product line and the company has used its 5,400 pounds of raw material in an optimal fashion, what is the highest price Barlow Company should be willing to pay for an additional pound of materials? Check my work Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Calculate the contribution margin per pound of the constraining resource for each product. B Contribution margin per pound of the constrained resource Required 1 Required 2 > C plete uns Required 1 Fquired 2 Required 3 Required 4 Assuming Barlow has unlimited demand for each of its three products, what is the maximum contribution margin the company can earn when using the 5,400 pounds of raw material on hand? Maximum contribution margin < Required 1 Required 3 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Assuming Barlow's estimated customer demand is 600 units per product line, what is the maximum contribution margin the company can earn when using the 5,400 pounds of raw material on hand? Maximum contribution margin < Required 2 Required 4 > Required 1 Required 2 Required 3 Required 4 A foreign supplier could furnish Barlow with additional stocks of the raw material at a substantial premium over the usual price. Assuming Barlow's estimated customer demand is 600 units per product line and the company has used its 5,400 pounds of raw material in an optimal fashion, what is the highest price Barlow Company should be willing to pay for an additional pound of materials? Highest price willing to pay per pound < Required 3 Required 4 > Show less A