Bariow Company manufactures three products$-$A$,$ B$,$ and C$.$ The selling price, variable costs, and contribution margin for one unit of

each product follow:

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 material costs $$6$ per pound.

Required:

Calculate the contribution margin per pound of the constraining resource for each product.

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?

Complete this question by entering your answers in the tabs below.

Required $1$

Calculate the contribution margin per pound of the constraining resource for each product.

Complete this question by entering your answers in the tabs below.

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?