Exercise 13-8 (Static) Volume Trade-Off Decisions (LO13-5, LO13-6) 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 $180 $ 240 24 102 126 5 54 30% 80 90 170 32 146 130 5.60 37% 25% Selling price 5 270 Variable expensest Direct materials Other variable expenses Total variable expenses Contribution margin $ 100 Contribution margin ratio The same raw material is used in all three products. Barlow Company has only 6,000 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 $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 eam when using the 6,000 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 earn when using the 6,000 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 Barlows estimated customer demand is 500 units per product line and that the company has used its 6,000 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. Retired 1 Required 2 Required Required 4 Calculate the contribution margin per pound of the constraining resource for each product A 0 Contribution margin per pound of the constrained resource Exercise 13-8 (Static) Volume Trade-Off Decisions [LO13-5, LO13-6) 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 C 5220 5240 $ 150 24 102 126 $ 54 B0 90 170 $ 100 14 150 $ 60 25% 30% 37% Selling price Variable expenses Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio The same raw material is used in all three products. Barlow Company has only 6,000 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 $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 6,000 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 earn when using the 6.000 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 Barlows estimated customer demand is 500 units per product line and that the company has used its 6,000 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 2 Required Required 4 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 6,000 pounds of raw material on hand? Maximum contribution margin Exercise 13-8 (Static) Volume Trade-Off Decisions (L013-5, LO13-6) Barlow Company manufactures three products-A, 8, and C. The selling price variable costs, and contribution margin for one unit of each product follow 102 90 170 148 180 $ 100 37% 25 Product c Selling price $ 180 5.270 5.240 Variable expenses: Direct materials 24 80 32 Other variable expenses Total variable expenses 226 Contribution margin $ 54 5 60 Contribution margin ratio 305 The same raw material is used in all three products. Barlow Company has only 6,000 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 $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 eam when using the 6,000 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 earn when using the 6.000 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 Barlows estimated customer demand is 500 units per product line and that the company has used its 6,000 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 2 Required 3 Required 4 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 6,000 pounds of raw material on hand? Monum contribution malon Barlow Company manufactures three products-A, B, and C The selling price, variable costs, and contribution margin of OM each product follow A $180 Product B Selling price 5 270 $ 240 Variable expenses Direct materials 24 80 32 Other variable expenses 102 90 148 Total variable expenses 126 120 150 Contribution margin $ 54 5 100 $ 60 Contribution margin ratio 30% 37% 25% The same raw material is used in all three products. Barlow Company has only 6,000 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 $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 6,000 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 earn when using the 6,000 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 6,000 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 i Required 2 Required 3 Required 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 6,000 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? Show less Highest price wing to pay per pound