Barlow Company manufactures three productsA, 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	%

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 suppliers 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.

Required:

1. Calculate the contribution margin per pound of the constraining resource for each product.

3. Assuming that Barlows 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?