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. 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 supplier's plant. Management is trying to decide which product(s) to concentrate on next week in filling its backlog of orders. The material costs 56 per pound. Required: 1. Calculate the contribution margin per pound of the constraining resource for each product. 2. Assuming that Bariow has unlimited demand for each of its three products, what is the maximum contribution margin the company can earn when using the 5.400 pounds of raw material on hand? 3. Assuming that Bariow'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 Bariow 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 additlonal pound of materials? Assuming Barlow's estimated customer demand is 600 units per product line and that the company has used its 5,400p raw material in an optimal fashion, what is the highest price Barlow Company should be willing to pay for an additional po materials? Complete this question by entering your answers in the tabs below. Calculate the contribution margin per pound of the constraining resource for each product. 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 Bariow Company should be willing to pay for an additional pound of materials? Complete this question by entering your answers in the tabs below. Assuming that Bariow has unlimited demand for each of its three products, what is the maximum contribution margin the compony can earn when using the 5,400 pounds of raw material on hand? 4. A foreign supplier could using the 5,400 pounds of raw material on hand? Assuming Barlow's could furnish Barlow with additional stocks of the raw material at a substantial premium over the usual price. raw material in an optimaled customer demand is 600 units per product line and that the company has used its 5,400 pounds of materials? Complete this question by entering your answers in the tabs below. Assuming that Bariow's estimated customer demand is 600 units per product ine, what is the maximum contribution margin the company can earn when using the 5,400 pounds of raw material on hand? Assuming Bariow's estimated customer demand is 600 unts of the raw material at a substantial premium over the usual price. raw material in an optimal fashion, what is the highest prits per product line and that the company has used its 5,400 pounds o materials? Complete this question by entering your answers in the tabs below. 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 iss 5,400 pounds of raw material in an optimal fashion, what is the highest price Bariow company should be willing to pay for an additional pound of materials
