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Barlow Company manutactures three products A,B, and C, The selling price, variable costs, and contribution margin for one unit of each product follow: The same

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Barlow Company manutactures 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 tying to decide which product(S) to concentrate on next week in filling its backlog of orders. The material costs $9 per pound. 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 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 forelign supplier could furnish Barlow with sdditional stocks of the raw material at a substantial premlum 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 materiat in an optmal fastion, what is the highest price Barlow Company should be wiling to pay for an additional pound of materiab

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