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ped Barlow Company manufactures three products-A, B, and C. The selling price, variable costs, and contribution margin for one unit of each product follow.
ped Barlow Company manufactures three products-A, B, and C. The selling price, variable costs, and contribution margin for one unit of each product follow. Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio A Product B $ 180 $270 C $ 240 24 80 32 1021 98 148 126 170 180 $ 54 $ 100 $ 60 30% 37% 25% ook Print erences 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. 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 company can earn when using the 6,600 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 the company can earn when using the 6,600 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 6,600 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? 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. Contribution margin per pound of the constrained resource B Barlow Company manufactures three products-A, B, and C, The selling price, variable costs, and contribution margin for on each product follow Product A B C Selling price Variable expenses: Direct materials $ 180 $270 $240 24 80 32 other variable expenses 102 90 148 Total variable expenses 126 170 180 Contribution margin $ 54 $ 100 $ 60 Contribution margin ratio 30% 37% 25% nces The same raw material is used in all three products. Barlow Company has only 6,600 pounds of raw material on hand and will 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 pre 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 co can earn when using the 6,600 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 company can earn when using the 6,600 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 pr Assuming Barlow's estimated customer demand is 500 units per product line and that the company has used its 6.600 pou raw material in an optimal fashion, what is the highest price Barlow Company should be willing to pay for an additional pour 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 margin the company can earn when using the 6,600 pounds of raw material on hand? Maximum contribution margin Barlow Company manufactures three products-A, B, and C. The selling price, variable costs, and contribution margin for one unit each product follow: A Product B Selling price Variable expenses: $ 180 $ 270 C $240 Direct materials 241 80 32 pped other variable expenses 102 90 148 Total variable expenses 126 170 180 Contribution margin $ 54 $ 100 $ 60 30% 37% 25% Contribution margin ratio Book Hint As 10 10 Prim eferences 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 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 compan can earn when using the 6,600 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 the company can earn when using the 6,600 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 6,600 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? 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 margin the company can earn when using the 6,600 pounds of raw material on hand? Maximum contribution margin Other variable expenses Total variable expenses Contribution margin Contribution margin ratio 102 90 148 126 170. 180 $ 54 $ 100 $ 60 30% 37% 25% d The same raw material is used in all three products. Barlow Company has only 6,600 pounds of raw material on hand and 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 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 can earn when using the 6,600 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 ma company can earn when using the 6,600 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 usua Assuming Barlow's estimated customer demand is 500 units per product line and that the company has used its 6,600 p raw material in an optimal fashion, what is the highest price Barlow Company should be willing to pay for an additional p materials? erences Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 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 6,600 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? Highest price willing to pay per pound Show less a < Required 3
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