Exercise 6-8 (Algo) Volume Trade-Off Decisions [LO6-5, L06-6] Barlow Company manufactures three products-A, B, and C. The selling peice, variable costs, and contribution alargin for one unit of each product follow: The same raw material is used in all three products. Barlew. Company has only 6.000 pounds of raw materal on hand and will not be uble to obtain any more of it for several weeks due to a strike in its suppller's plant. Manogement is trying to decide which producted to concentrate of next week in filing its becklos of orders. The material costs 58 pet pound. Required: 1. Caiculate the contribution margin pet pound of the canstraining resource for each product. 2. Assuming that Harlow nas unilmited demand for each of its thee products, what is the maximum corititutian margin the company cer earn when using the 6.000 pounds of raw matecial on hand? 3. Assuming that Bariow's estimated customer demand is 500 wnits per.product ino. what is the mexim in contibution martin the compeny can esm whet using the 6,000 pounds of rew materal on hanio? 4. A fareigh supplier could furnith Batlow with add tional stocis of the faw material at a substantial promilumi owar the uspei ptice. Assuming Bafiow's estmated customerdemend is 500 unts per product line and that the campary that used its 6,000 pounds of raw material in on aptimal tashion, whet is the highest price Bariow. Company should be witho to pay for an acld toried peume of meterials