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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
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 Selling price $190 $270 $240 Variable expenses: Direct materials 18 54 24 Other variable expenses Total variable expenses Contribution margin Contribution margin ratio 115 133 $ 57 108 162 $108 156 180 $ 60 30% 40% 25% The same raw material is used in all three products. Barlow Company has only 5,500 pounds of ravw 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
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