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Please help to solve Questions 3 and 4? Barlow Company manufactures three products-A, B, and C. The selling price, varlable costs, and contribution margin for
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Please help to solve Questions 3 and 4?
Barlow Company manufactures three products-A, B, and C. The selling price, varlable costs, and contribution margin for one unit of each product follow: The same raw materlal is used In all three products. Barlow Company has only 5,400 pounds of raw materlal 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 trying to decide which product(s) to concentrate on next week in filling its backlog of orders. The materlal costs $6 per pound. Requlred: 1. Calculate the contribution margin per pound of the constralning resource for each product. 2. Assuming Barlow has unlimited demand for each of its three products, what is the maximum contribution margin the company can earn when using the 5,400 pounds of raw materlal on hand? 3. Assuming Barlow's estimated customer demand is 600 units per product line, what is the maximum contribution margin the company can earn when using the 5,400 pounds of raw materlal on hand? 4. A forelgn supplier could furnish Barlow with additional stocks of the raw materlal at a substantlal premlum over the usual price. Assuming Barlow's estlmated customer demand is 600 unlts per product line and the company has used its 5,400 pounds of raw materlal In an optimal fashion, what is the highest price Barlow Company should be willing to pay for an additional pound of materlals? ulate the contribution margin per pound of the constraining resource for each product. Assuming Barlow has unlimited demand for each of its three products, what is the maximum contribution margin the company can earn when using the 5,400 pounds of raw material on hand? Assuming Barlow's estimated customer demand is 600 units per product line, what is the maximum contribution margin the company can earn when using the 5,400 pounds of raw material on hand? 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 600 units per product line and the company has used its 5,400 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 materialsStep by Step Solution
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