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Exerclse 11-8 (Static) Volume Trade-Off Declslons [LO11-5, LO11-6] Barlow Company manufactures three producs A. B. and . The se ing price. war able costs. and cortribution margin for one unit of each product follow: The same raw matefial is used in a three products. Barlow Company has ony 6.000 pounds of raw material on hand and wigh not be able to obtain any more of it for several weeks due to a strike in its suppliers plant. Management is trying to decide which productis) to concentrate on next weekin fifling its backlog of orders. The material costs $8 per pound Required: 1. Calculate the contribution margin per pound of the constraining rescurce 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 Barlowis estimated customer demand is 500 units per product ine. what is the maximum contribution margin the company can carn 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 Bariow's estimated customer demand is 500 units per product line and that the company has used its 6.000 pounds of raw material in ari optimal fashion. What is the highest price Barlow Company should be willing to pay for an acditional pound of materlals? Complete this question by entering your answers in the tabs below. A foreign supplier could furnsh Barlow with addajnal stocis of the rave material at a substantial premium poer the Usuai price. Assuming Barlowis estimated customer demand is 500 units per product line and that the colmpan hap upledic 6.000 pounds of row material in an optimal fashion, what is the highest price Barlow Comgany should be Niling to pay for an additional pound of materials