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Exercise 10-8 Utilization of a Constrained Resource [L010-5, LO10-6 Barlow Company manufactures three products A, B, and C. The selling price, variable costs, and contribution

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Exercise 10-8 Utilization of a Constrained Resource [L010-5, LO10-6 Barlow Company manufactures three products A, B, and C. The selling price, variable costs, and contribution margin for one unit of each product tollow Selling price $280 $400 $360 Variable expenses Direct materials Other variable expenses 14 154 21 213 144 200 $112 $200 126 Total variable expenses 168 234 Contribution margin 40% 50% 35% he same raw material is used in all three products Barlow Company has only 4,300 pounds of raw material suppliers plant Management is trying to decide backlog of orders The material costs $7 per pound on hand and will not be able to obtain any more of it for several weeks due to a strike in its week in filling its 1 Compute the amount of contribution margin that will be obtained per pound of material used in Contribution margin per unt Direct material cost per unit Direct material cost per pound Pounds of maternial required per unit Contribution margin per pound 2a Compute the amount of contribution margin on each product Type here to search

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