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 B C

Selling price $ $150$ $ $240$ $ $200$

Variable expenses:

Direct materials $124818$

Other variable expenses $108120140$

Total variable expenses $120168158$

Contribution margin $ $30$ $ $72$ $ $42$

Contribution margin ratio $20\%30\%21\%$

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:

$1.$ 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 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 can earn when using the $5,400$ 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 Barlow$$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 materials?