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 $ 160 $ 270 $ 240 Variable expenses: Direct materials 16 80 32 Other variable expenses 108 90 148 Total variable expenses 124 170 180 Contribution margin $ 36 $ 100 $ 60 Contribution margin ratio 23% 37% 25% The same raw material is used in all three products. Barlow Company has only 6,000 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 $8 per pound.

3. Assuming that Barlows estimated customer demand is 500 units per product line, what is the maximum contribution margin the company can earn when using the 6,000 pounds of raw material on hand?