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	$	150			$	240			$	200
Variable expenses:
Direct materials		12				48				18
Other variable expenses		108				120				152
Total variable expenses		120				168				170
Contribution margin	$	30			$	72			$	30
Contribution margin ratio		20	%			30	%			15	%

2b.

Which order would you recommend that the company work on next weekthe orders for product A, product B, or product C?

	Product A
	Product B
	Product C

3.

A foreign supplier could furnish Barlow with additional stocks of the raw material at a substantial premium over the usual price. If there is unfilled demand for all three products, what is the highest price that Barlow Company should be willing to pay for an additional pound of materials? maximuim amount per pound =