Exercise 12-8 Volume Trade-Off Decisions [LO12-5, LO12-6) Barlow Company manufactures three products-A, B, and C. The selling price, variable costs, and contribution margin for one unit of each product follow: Product Selling price Variable expenses: $180 300 $260 30 120??210-200 Direct materials 20 90 other variable expenses Total variable expenses Contribution margin $40 $ 90 60 22% 30% 23% Contribution margin ratio The same raw material is used in all three products. Barlow Company has only 6,750 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 product(s) to concentrate on next week in filling its backlog of orders. The material costs $10 per pound