HW: Ch 7 5. 4.28 polnts Exercise 7-8 Utilization of a constrained Resource L07.5, LO 76] 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 270 5360 $340 Direct materials 36 Other variable expenses Total variable expenses Contribution margin 72 08 180 42 179 62 $108 $180 $119 Contribution margin ratio 40% 50% 35% The same raw material is used in all three products. Barlow Company has only 4,200 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 $6 per pound Required 1. Compute the amount of contribution margin that will be obtained per pound of material used in each product. 1/3