Chapter 6 HW-13 points poin Exercise 6-8 (Algo) Volume Trade-Off Decisions [LO6-5, LO6-6] Barlow Company manufactures three products-A, B. and C. The selling price, variable costs, and contribution margin for one unit of each product follow. Book Selling price Variable expenses: Direct material other variable expenses Contribution margin H futal variable expenses Contribution margin ratio Print Product c $ 180 $270 $200 24 " 32 102 98 148 126 170 188 554 $ 100 5.00 sex 375 Reference The same raw material is used in all three products. Barlow Company has only 6.600 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 products) to concentrate on next week in filling its backlog of orders. The material costs $8 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 6,600 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 6,600 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 500 units per product line and that the company has used its 6,600 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. Required 1 Required 4 Calculate the contribution margin per pound of the constraining resource for each product. Contribution marge per pound of the cendrained resource Required 2 > Saved