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Barlok comparyy manufactures three products A,B, and C. The selling price, variable costs, and contribution margin for one unit of each product follow: The same
Barlok comparyy 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. Bariow Company has only 6.300 pounds of faw maserial on hand and Wil not bedole to obtoin any more of it for several weeks due to a strike in its supplier's plant management es trying to decide which product/s) to concentrate on next week in filling ats bocilog of orders. The mamerial costs 59 per pound Requiired: 1. Calculate the contribution margin per pound of the constraining resource for evch product 2. Ascuming that Barlow has unlimited demand for each of its three producth, what is the maximum contribution margin the company can earm when using the 6,300 pounds of raw matedial on hand? 3. Assuming that Barow's estimated customer demand is 600 onits per product ane, what is the maximum contribueion. margin the compsny con earn when using the 6,300 pounds of raw materis on hand? 4. A foreign supplier could fumish Bariow with additional stocks of the row maserial at a substantia premium over the ises. ptice. Assuming Bariow's estimated customer demand is 600 units per aroduct ilo and that the compary has ised its 6 .300 pounds of taw material in an ogtimal fastion, what is the tighest pice blariow Company should be willing to pay for an additional pound of materiais? Complete this question by entering your answers in the cabs below. Calculate the contributioa margin becpoiud of the constraining recporce for ejch brbouct . =3
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