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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
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 Comipany 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 b strike in is sapplicr's plant. Marlagementis trying fo decide which productis) to concentrate on riext weekin filing its backlog of ordets the moterial cosis $6 per pound Required: 1. Calculate the contribution margin per pound of the constraning resodrce for each product 2. Assuming that Barlowithas unlimited demand for each of its three products. What is the maximum contribution margin the company can eam when using the 5.400 pounds of raw materal on tini? 3. Assuming that Barlow's estimated customer demiand is 600 unts per product line. what is the maximum conitribution mafgin the \& Assuming that bariow nas unumited demand ior 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 Barlow's estimated customer demand is 600 units per product line, what is the maximum contribution margin the comparny 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? Complete this question by entering your answers in the tabs below. Calculate the contribution margin per pound of the constraining resource for each product. Assuming that Barlow has unlimited demand for each of its three products, what is the maximum contribution margin th company can earn when using the 5,400 pounds of raw material on hand? materials? Complete this question by entering your answers in the tabs below. Assuming that Barlow's estimated customer demand is 600 units per product line, what is the maximum contribution margir the company can earn when using the 5,400 pounds of raw material on hand? 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 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
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