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please help. it is all one question just different parts. * The following information relates to the next three questions. Barlow Company manufactures three products:
please help. it is all one question just different parts.
* The following information relates to the next three questions. Barlow Company manufactures three products: X,Y, and Z. The demand for each product is 100 units. The selling price, variable costs, and contribution margin for one unit of each product follow: Barlow has a testing machine which can test its products up to a certain limited number of times with a fixed cost of $28,000. To maximize its profit, management is trying to decide which product(s) to concentrate in manufacturing. Required: In what order (which product first, second, and third) does the company have to make the products? Use the information given in the above question. Further assume that only 1,080 tests are available. If Barlow makes the best decision, how many units of Product Z will be produced? Use the information given in Question 2. Assume that Barlow has found that an outside company can provide a technology that can reduce the number of tests requited for Product Z. If this technology is used, Barlow can make each unit of Z with 2.5 tests. What is the maximum amount that Barlow would pay to the outside company in order to use this technology? Use the information given in Question 2. Ignore Question 4. Further assume that Barlow has found that an outside contractor can do 90 tests for Barlow. What is the maximum price per test that Barlow can pay to the outside contractor Step by Step Solution
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