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please answer as soon as possible thank you Barlow Company manufactures three products: A, B and C. The selling price, variable costs and contribution margin
please answer as soon as possible thank you
Barlow Company manufactures three products: A, B and C. The selling price, variable costs and contribution margin for one unit of each product follow Product $167.00 $240.00 $235.00 Selling price Less: Variable expenses Direct aterials Direct labour other variable expenses Total variable expenses Contribution antin 34.ee 17.80 85.10 136.90 146.00 17.80 32.ee 195.80 188.00 17.80 69.25 195.05 $ 30.10 $44.20 $39.95 The same raw material is used in all three products and costs $4 per kilogram. Barlow Company has only 14,500 kilograms of material on hand and will not be able to obtain any more material for several weeks due to a strike in its supplier's plant. Management is trying to decide which products) to concentrate on next week in filling its backlog of orders. Direct labour costs $31 per hour Required: 1. Compute the amount of contribution margin that will be obtained per kilogram of material used in each product . (Do nor round Intermediate calculations. Round your answers to 2 decimal places.) B Contribution margin per kilogram 2. Which orders would you recommend that the company work on next week--the orders for product A products or product ? Product A Product B Product 3. A foreign supplier could furnish Bartow with additional stocks of the raw material at a substantial premium over the usual price there is unfilled demand for all three products, what is the highest price that Barlow Company should be willing to pay for an additional kilogram of materiale? (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Highest price per klogram 4. Assume that direct labour becomes a constant Instead of direct materials. How will your answer to Recurement (2) above change? Product A Products Product Step by Step Solution
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