Question
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
Barlow Company manufactures three products: A, B, and C. The selling price, variable costs, and contribution margin for one unit of each product follow: $180 $250 $254 84 88 134 $72 $84 $96 The same raw material is used in all three products. Barlow Company has only 6,000 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 $4 per pound. Compute the amount of contribution margin that will be obtained per pound of material used in each product. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)
Product A B C Selling price Variable expenses: Direct materials 24 78 24 Other variable expenses Total variable Expense 108 166 158 Contribution margin Contribution margin ratio 40% 33.6% 37.8% Requirement 1:
A B C Contribution margin $ $ $
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