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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 Product

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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 Product Seling price Variable expenses: 210 $330 320 Direct materials 21 63 28 147 168244 68 231 272 42 $99 48 Other variable expenses Total variable expenses Contribution margin 20% 30% 15% Contribution margin ratio The same raw material is used in all three products. Barnlow Company has only 5,200 pounds of raw material on hand and wil not be able to obtain any more of t 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 $7 per pound. Required: . Compute the amount of contribution margin that will be obtained per pound of material used in each product Contribution margin per unit Direct material cost per unit Direct material cost per pound Pounds of material required per unit Contribution margin per pound 2a. Compute the amount of contribution margin on each product Contribution margin per pound Pounds of material available Total contribution margin -the orders for product A, product B, or product C? 2b. Which orders would you recommend that the company work on next week O Product A O Product B Product C could fumish Barlow with additional stocks of the raw material at a substantial premium aver the usual price. If there is unfilled demand for all three products, what is the 3. A foreign supplier highest price that Barlow Company should be wiling to pay for an additional pound of materials? per pound

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