managerial accounting

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 A $ 180 Product B $ 270 24 102 126 $ 54 se 90 170 $ 100 32 148 180 $ 6e 25% 30% Selling price $ 240 Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin 37% 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 romanurn when in the nine of raw material on hand? - 49F ON (81 o 12 Required 1 Required 2 Required 3 Required 4 Calculate the contribution margin per pound of the constraining resource for each product. B tribution margin per pound of the constrained resource o BI 13 JUU un pei pruuuct line and that the company has used its 6. raw material in an optimal fashion, what is the highest price Barlow Company should be willing to pay for an add materials? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 assuming that Barlow has unlimited demand for each of its three products, what is the maximum contribution margint mpany can earn when using the 6,000 pounds of raw material on hand? aximum contribution margin 49F A (8) L O DI C UW DOLCULUSHI UCHUN JUU USE PUUULL TIC, WITOLD LEGALIUM he company can earn when using the 6.000 pounds of raw material on hand? A foreign supplier could furnish Barlow with additional stocks of the raw material at a substantial premium over the us ssuming Barlow's estimated customer demand is 500 units per product line and that the company has used its 6,000 fraw material in an optimal fashion, what is the highest price Barlow Company should be willing to pay for an addition 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 margi the company can earn when using the 6,000 pounds of raw material on hand? aximum contribution margin when using the 6,000 pounds of raw material on hand? A foreign supplier could furnish Barlow with additional stocks of the raw material at a substantial premium over the us suming Barlow's estimated customer demand is 500 units per product line and that the company has used its 6.000 raw material in an optimal fashion, what is the highest price Barlow Company should be willing to pay for an addition materials? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required foreign supplier could furnish Barlow with additional stocks of the raw material at a substantial premium over the usual rice. Assuming Barlow's estimated customer demand is 500 units per product line and that the company has used its 6,00 ounds of raw material in an optimal fashion, what is the highest price Barlow Company should be willing to pay for an dditional pound of materials? Show less ghest price willing to pay per pound TRA 9 49F