manufactures three products-A, B, and C. The selling price, variable costs, and contribution margin Barlow Com ar one unit of each product follow: w Company Product AB Selling price Variable expenses S 180 S 300 S240 Direct materials 24 80 32 Other variable expenses Total variable expenses 102 100 148 126 180 180 Contribution margin S 54 S 120 S 60 Contribution margin ratio 30% 40% 25% The same raw material is used in all three products. Barlow Company has only 6,600 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. 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 6,600 pounds of raw material in an optimal fashion, what is the highest price Barlow Company should be willing to pay for an additional pound of materials? A. $20 B. S18 C. $16 S22 D. E. None of the above