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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 $230 320 280 Selling price Variable expenses: 12 Direct materials 48 18 172 176 220 Other variable expenses 184 224 238 Total variable expenses 46 96 42 Contribution margin 30% Contribution margin ratio 20% 15% The same raw material is used in all three products. Barlow Company has only 5,900 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 o next week in filling its n backlog of orders. The material costs $6 per pound. Required
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