Answered step by step
Verified Expert Solution
Question
1 Approved Answer
i only need required 2-4 4 Barlow Company manufactures three products-A, B, and C. The selling price, variable costs, and contribution margin for one ur
i only need required 2-4
4 Barlow Company manufactures three products-A, B, and C. The selling price, variable costs, and contribution margin for one ur each product follow: $ 160 Product B $ 270 $ 240 16 108 124 $. 36 80 90 170 $ 100 32 148 180 $ 60 Book Hint 378 258 Print ferences Selling price Variable expenses Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio 230 The same raw material is used in all three products. Barlow Company has only 6,000 pounds of riw material on hand and will na able to obtain any more of it for several weeks due to a strike in its supplier's plant Managements trying to decide which produ 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 comp 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 th 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 o material in an optimal fashion, what is the highest price Barlow Company should be willing to pay for an additional pound of mate Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Calculate the contribution margin per pound of the constraining resource for each product Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started