Barlow Company manufactures three products-A, B, and C. The selling price, variable costs, and contribution margin for or each product follow: BO 148 180 126 Product Selling price $ 180 $ 270 $ 240 Variable expenses : Direct materials 24 32 Other variable expenses 102 90 Total variable expenses Contribution margin $ 54 $ 60 Contribution margin ratio 308 374 25 The same raw material is used in all three products. Barlow Company has only 6,000 pounds of raw material on hand and 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 p concentrate on next week in filling its backlog of orders. The material costs $8 per pound. 170 $ 100 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, what is the maximum contribution margin the can earn when using the 6,000 pounds of raw material on hand? 3. Assuming that Barlow's estimated customer demand is 500 units per product line, what is the maximum contribution mar company can earn when using the 6,000 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 Assuming Barlow's estimated customer demand is 500 units per product line and that the company has used its 6,000 pou material in an optimal fashion, what is the highest price Barlow Company should be willing to pay for an additional pound of