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PLEASE DO 29 Barlow Company manufactures three products: A, B, and C The selling costs, and contribution margin for one unit of each product follow:
PLEASE DO 29
Barlow Company manufactures three products: A, B, and C The selling costs, and contribution margin for one unit of each product follow: Product - A $204 B $314 108 Selling price Less variable expenses: Direct labor Direct materials Total variable expenses Contribution margin 60 64 124 $ 80 80 188 $126 **931 $104 The same labor is used in all three products. Barlow Company has only 2,000 hours of available labor time next week and the demand for the company's products far exceed its ability to produce. Management is trying to decide which product to concentrate on next week in fillings its backlog of orders. The direct labor rate is $12 per hour. 28. Which product would you recommend that Barlow work on? Product A. b. Product B. c. Product C 4. Barlow would be indifferent as to which product to work on. 29. By puying a higher wage rate, more than 2,000 hours of direct labor time can be made available next week. If the labor is used in the manufacture of Product B, what is the highest rate per hour that Barlow would be willing to pay? 512 1.514 926 4.598 None of the above Step by Step Solution
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