Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please Answer all the parts here: There six parts for one question 6 Barlow Company manufactures three products-A. B. and C. The selling price. varlable

Please Answer all the parts here: There six parts for one question

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

6 Barlow Company manufactures three products-A. B. and C. The selling price. varlable costs. and contribution margin for one unlt of each product follow points Selling price Variable expenses $160 270 220 32 148 Direct material: 16 108 8e 98 Other variable expenses Total variable expenses Contribution margin eBook $ 36 $100 40 23% 37% 18% Contribution margin ratio Hint The same raw materlal 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 trylng to decide which product(s) to concentrate on next week In filling its backlog of orders. The material costs $8 per pound. Print ReferencesRequired: 1. Calculate th 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 ean 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 the company can earn when using the 6.000 pounds of raw material on hand? 4. A forelgn supplier could furnish Barlow with additional stocks of the raw material at a substantial premlum 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 of raw material In an optimal fashion, what is the highest price Barlow Company should be willing to pay for an additional pound of materlals? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required3 Required 4 Calculate the contribution margin per pound of the constraining resource for each product. Contribution margin per pound of the constrained resource Required2>

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Strategic Pricing And Management Accounting

Authors: David Dugdale

1st Edition

78-1032224824, 1032224827

More Books

Students also viewed these Accounting questions