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Barlow Company manufactures three products. A B. and C. The selling price, variable costs, and contribution margin for one unit of each product follow 2.
Barlow Company manufactures three products. A B. and C. The selling price, variable costs, and contribution margin for one unit of each product follow 2. Compute the amount of contribution margin on each product. Product $300 Selling price $200 $280 Variable expenses Direct materials Other variable expenses s 15 25 1 4 28 112 70 110 35 1 75 Contribution margin per pound Pounds of maternal available Total contribution margin Total variable expenses Contribution margin 140 560 180 S120 210 $ 70 Contribution margin ratio 30% 40% 25% 2b. Which orders would you recommend that the company work on next week-the orders for product A product B. or product C? The same raw materials used in all three products Barlow Company has only 5.600 pounds of raw material on hand and will not be able to obtain any more of for several weeks due to a strike in its supplier's plant Management is trying to decide which productes) to concentrate on next week in filling its backlog of orders. The material costs $7 per pound Product A Product B Product C Required: Compute the amount of contribution margin that will be obtained per pound of material used in each product 3. A foreign supplier could furnish Barlow with additional stocks of the raw material at a substantial premium over the usual price. If there is unfilled demand for all three products, what is the highest price that Barlow Company should be willing to pay for an additional pound of materials? Contribution margin perunt Drect material cost per unit Direct material cost per pound Pounds of maternal required perunt Contribution margin per pound Maximum amount per pound 0 0 0 000
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