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Barlow Company manufactures three products-A, B, and C. The selling price, variable casts, and contribution margin for one unit of cach product follow: The same

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Barlow Company manufactures three products-A, B, and C. The selling price, variable casts, and contribution margin for one unit of cach product follow: 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 supplier's plant. Monagement is trying to decide which productis) to concentrate on next week in filling its bocklog of orders. The material costs $8 per pound Required: 1. Colculate 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 company 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 margin the company can eam 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 prem lum over the usual price. Assuming Barlow's estimated customer demand is 500 units per product line and that the company has used its 6,000 pounds of raw materiat in sn optimal fashion, what is the highest price Bartow Company should be willing to pay for an additional pound of materials

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