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Barlow Company manufactures three products: A, B and C. The selling price, vatiable costs and contribution margin for one unit of each product follow: The

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Barlow Company manufactures three products: A, B and C. The selling price, vatiable costs and contribution margin for one unit of each product follow: The same raw material is used in all three products and costs $4 per kilogram. Barlow Company has only 5,500 kilograms of materlai on hand and will not be able to obtain any more material for several weeks due to a strike in its suppller's plant. Management is trying to decide which ptoducl(s) to concentrate on next week in filling its backlog of orders. Direct labour costs $13 per hour. Required: 1. Compute the amount of contribution margin that will be obtained per kllogram of material used in each product, (Do not round intermediote caleulotions. Round your answers to 2 decimol places.) 2. Which orders would you recommend that the company work on next week-the orders for product A, product B or product C ? Product A Product 8 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 unfiled demand for all three products, what is the highest price that Barlow Company should be willing to pay for an addititional kilogram of materials? (Do not round intermediate calculations. Round your answer to 2 decimal ploces.) Assume that direct labour becomes a constraint instead of direct materials. How will your answer to Requirement (2) above change? Product A Product B Product

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