Please help me with the following questions. Please show solutions.

PROBLEM 1

Barlow Company manufactures three productsA, B, and C. The selling price, variable costs, and contribution margin for one unit of each product follow: Product A B C Selling price 5 186 5 2?6 5 24-6 Variable expenses: Direct materials 24 56 32 Other variable expenses 102 90 148 Total variable expenses 126 170 188 Contribution margin 5 54 5 100 5 56 30% 3?% 25% Contribution margin ratio The same raw material 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 ofitfor several weeks due to a strike in its supplier's plant. Management is trying to decide which productis] 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 6,000 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 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 6,000 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 materials? Dorsey Company manufactures three products from a common input in ajoint processing operation. Joint processing costs up to the split-off point total $350,000 per quarter. For financial reporting purposes, the company allocates these costs to thejoint products on the basis of their relative sales value at the splitoff point Unit selling prices and total output at the split-off point are as follows: Quarterly Product Selling Price Output A $ 16 per pound 15,000 pounds B $ 8 per pound 20,000 pounds C $ 25 per gallon 4,000 gallons Each product can be processed further after the splitoff point. Additional processing requires no special facilities. The additional processing costs {per quarter] and unit selling prices after further processing are given below: Additional Processing Selling Product Costs Price A $53,000 $20 per pound 3 $80,000 $13 per pound C $36,000 $32 per gallon [ Required: 1. What is the nancial advantage [disadvantage] of further processing each of the three products beyond the splitoff point? 2. Based on your analysis in requirement '1, which product or products should be sold at the splitoff point and which product or products should be processed further