Exercise 12-8 Volume Trade-Off Decisions [LO12-5, L012-6) ts Barlow Company manufactures three products-A, B, and C. The selling price, variable costs, and contribution margin for one unit of each product follow eBook Hint Print ferences Selling price Variable expenses: 150 $240 $20 12 48 18 120 168 178 $30 72 38 Direct materials Other variable expenses18 120 152 Total variable expenses Contribution margin Contribution margin ratio 20% 30% 15% 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 trying to decide which products) to concentrate on next week in filling its backlog of orders. The material costs $6 per pound Required