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Bariow Company manufactures three products-A, B, and C. The selling price, voriable costs, and contribution margin for one unit of each product follow: The same

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Bariow Company manufactures three products-A, B, and C. The selling price, voriable 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 filing its backlog of orders. The material costs $6 per pound. 1. Calculate the contribution margin per pound of the constraining resource for each product. Required: 2. Assuming that Barlow has unlimited demand for each of its three products, what is the maximum contribution marpin the compary can earn when using the 5.400 pounds of raw material on hand? 3. Assuming that Barlow's estimated customer demand is 600 units per product line, what is the maximum contribution margin the company con oarn when using the 5.400 pounds of raw material on hand? 4. A foreign supplier could furnish Bariow with additional stocks or the raw meterial at a substential premium over the usual price. Assuming Bariow's estimated customer demand is 600 units per product ine and that the compeny has used its 5,400 pounds of raw material in an optimal fashion. what is the heghest price Barlow Company should be wiling to pay for an additiond pound of materials? Calculate the contribution margin per pound of the constraining resource for each product. Assuming that Barlow has unlimited demand for each of its three products, what is the maximum contribution company can earn when using the 5,400 pounds of raw material on hand? Assuming that 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? A foreign supplier could furnish Barlow with additional stocks of the raw material at a substantial premlum over the usuai price, Assuming Bariow's estimated customer demand is 600 units per product line and that 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 materiais

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