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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: The same

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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: The same raw material is used in all three products. Bariow 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 week in filling its backlog of orders. The materiat costs $6 per pound Required: 1. Calculate the contribution margin per pound of the constraining resource for each product. 2. Assuming that Barlow has unlimited demand for each of its three products, whot is the maximum contribution margin the company can earn when using the 5,400 pounds of raw material on hand? 3. Assuming that 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 that 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? \begin{tabular}{|c|c|c|c|} \hline= & A & B & C \\ \hline Contribution margin per pound of the constrained resource & & & \\ \hline \end{tabular} Assuming that Barlow has unlimited dernand for each of its thee products, what is the maximurn contribution margin the company can earn when using the 5,400 pounds of raw material on hand? Assuming that 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? A foreign supplier could fumish Barlow with additional stocks of the raw material at a substantial premium over the usual price, Ascuming Barlow's estimated customer demand is 600 units per product line and that the company hail 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

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