Barlow Company manufactures three products- A, B, and C. The selling price, varlable costs, and contribution margin for one unit of each product follow: The same raw material is used in all three products. Barlow Company has only 5,400 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 woek in filling its backlog of orders. The material costs $6 per pound. Required: 1. Calculate the contribution margin per pound of the constraining resource for each product. 2. Assuming Barlow has unlimited demand for each of its three products, what is the maximum contribution margin the company can earn when using the 5,400 pounds of raw materlal on hand? 3. Assuming Barlow's estimated customer demand is 600 units per product line, whot is the maximum contribution margin the company can earn when using the 5,400 pounds of raw material on hand? 4. A foreign supplier could furnish Barlow with additional stocks of the row material at a substantial premium over the usual price: Assuming Garlow's estimated customer demand is 600 units per product line and the compary has used its 5,400 pounds of row material in an optimal fashion, what is the highest price Barlow Company should be willing to pay for an additional pound of materiais? Required: 1. Calculate the contribution margin per pound of the constraining resource for each product. 2. Assuming Barlow has unlimited demand for each of its three products, what is the maximum contribution margin the company can earn when using the 5,400 pounds of raw material on hand? 3. Assuming Barjow's estimated customer demand is 600 units per product line, what is the maximum contribution margin the company can earn when using the 5,400 pounds of raw material on hand? 4. A foreign supplier could furnish Barlow with additional stocks of the raw material at a substantial premium over the usual price. Assuming Barlow's estimated customer demand is 600 units per product line and the company has used its 5,400 pounds of raw material in an optimal fashion, what is the highest price Barlow Company should be willing to pay for an additional pound of materials? Complete this question by entering your answers in the tabs below. Calculate the contribution margin per pound of the constraining resource for each product. Required: 1. Catcutate the contribution margin per pound of the constraining resource for each product. 2 Assuming Barlow has unlimited demand for each of its three products, what is the maximum contribution margin the company can earn when using the 5,400 pounds of raw material on hand? 3. Assuming Barlow's estimated customer demand is 600 units per product line, what is the maximum contribution margin the company can eam when using the 5,400 pounds of raw material on hand? 4. A forelgn supplier could furnish Barlow with additional stocks of the raw material at a substantial premium over the usual price. Assuming Barlow's estimated customer demand is 600 units per product line and the company has used its 5,400 pounds of raw material in an optimal fashion, what is the highest price Barlow Company should be willing to pay for an additional pound of materials? Complete this question by entering your answers in the tabs below. Assuming Bariow has unlimited demand for each of its three products, what is the maximum contribution margin the company can carn when using the 5,400 pounds of raw material on hand? 1. Calculate the contribution margin. per pound of the constraining resource for each product. 2. Assuming Barlow has unlimited demand for each of its three products, what is the maximum contribution margin the company can earn when using the 5,400 pounds of raw material on hand? 3. Assuming Barlow's estimated customer demand is 600 units per product line, what is the maximum contribution margin the company can earn when using the 5,400 pounds of raw material on hand? 4. A foreign supplier could furnish Barlow with additional stocks of the raw material at a substantial premium over the usual price. Assuming Barlow's estimated customer demand is 600 units per product line and the company has used its 5,400 pounds of raw material in an optimal fashion, what is the highest price Barlow Company should be willing to pay for an additional pound of materials? Complute this question by entering your answers in the tabs below. Assuming Barlow's estimated customer demand is 600 units per product line, what is the maximum contribution margin the company can earn when using the 5,400 pounds of raw material on hand? 1. Calculate the contribution margin per pound of the constraining resource for each product. 2. Assuming Barlow has unlimited demand for each of its three products, what is the maximum contribution margin the company can earn when using the 5,400 pounds of raw matertal on hand? 3. Assuming Barlow's estimated customer demand is 600 units per product line, what is the maximum contribution margin the company can earn when using the 5,400 pounds of raw material on hand? 4. A foreign supplier could furnish Barlow with additional stocks of the raw material at a substantial premium over the usual price. Assuming Barlow's estimated customer demand is 600 unlits per product line and the company has used its 5,400 pounds of raw material in an optimal fashion, what is the highest price Barlow Company should be willing to pay for an additional pound of materials? Compicte this question by entering your answers in the tabs below. A foreign supplier could furnish Barlow with additional stocks of the raw material at a substantial premium over the usual price. Assuming Barlow's estimated customer demand is 600 units per product line and the company has used its 5,400 pounds of raw material in an optimal fashion, what is the highest price Barlow Compary should be willing to pay for an additional pound of materials
