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	$180		$270		$240
Less variable expenses:
Direct materials	24		72		32
Other variable expenses	102		90		148
Total variable expenses	126		162		180
Contribution margin	$54		$108		$60
Contribution margin ratio	30%		40%		25%

The same raw material is used in all three products. Barlow Company has only 5,000 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 $8 per pound. Demand for each product is 700 units.

A.How many pounds of material would be required to satisfy demand for all three products? This is in total, not for just one unit.

B. Compute the amount of contribution margin that will be obtained per pound of material used in each product.

C. Which product would you recommend that the company work on next week first? Second? Third?

D. Based on your decision in (c), what is the maximum contribution margin the company will make next week?