Q4

Barlow Company manufactures three products-A, B, and C. The selling price. variable costs, and contribution margin for one unit of each product follow: The same raw material is used in all three products. Barlow Company has only 5.400 pounds of raw materiat on hand and wil 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 productis) to concentrate on next week in filling its backlog of orders. The material costs $6 per pound. Required: 1. Calculate the contribution margin per pound of the constraining resource for each product. 2. Assuming that Bariow 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? 3. Assuming that 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 row material on hand? 4. A foreign supplier could fumish Barlow with additional stocks of the raw material at a substantial premlum over the usual price. Assuming Barlow's estimated customer demand is 600 units per product line and that the company has used its 5.400 pounds of raw material in an optimal fashion, what is the highest price Barlow Company should be wiling to pay for an additional pound of materiais? Complete this question by entering your answers in the tabs below. Calculate the contribution margin per pound of the constraining rescurce for each product. 3. Assuming that Barlow's estimated customer demand is 600 units per product line. what is the maximum conteibution margi company can earn when using the 5,400 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 pr Assuming Barlow's estimated customer demand is 600 units per product line and that the company has used its 5,400 pound material in an optimal fashlon, what is the highest price Barlow Company should be willing to pay for an additional pound of n Complete this question by entering your answers in the tabs below. Assuming that Barlow has unlimited demand for each of its three product , what is the maximum contribution margin the company can earn when using the 5,400 pounds of raw material on hand? 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 can earn when using the 5.400 pounds of raw material on hand? 3. Assuming that Barlow's estimated customer demand is 600 units per product line, what is the maximum contribution ma company can earn when using the 5,400 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 usua Assuming Barlow's estimated customer demand is 600 units per product line and that the company has used its 5.400 pou material in an optimal fashion, what is the highest price Barlow Company should be willing to pay for an additional pound o Complete this question by entering your answers in the tabs below. Assuming that Barlow's estimated customer demand is 600 units per product line, what is the maximum contribution margin. the company can eam when using the 5,400 pounds of raw matenal on hand? can earn when using the 5,400 pounds of raw material on hand? 3. Assuming that Barlow's estimated customer demand is 600 units per product line. what is the maximum contribution margin company can earn when using the 5.400 pounds of raw material on hand? 4. A foreign supplier could fumish Barlow with additional stocks of the rav material at a substantial premium over the usual pri Assuming. Barlow's estimated customer demand is 600 units per product line and that the company has used its 5.400 pounds material in an optimal fashion, what is the highest price Barlow Company should be willing to pay for an additional pound of m: Complete this question by entering your answers in the tabs below. A foreign supplier could furnish Barlow with additional stocks of the raw material at a fubstantial premium over the usual price. Assuming Barlow's estimated customer demand is 600 units per product ling and that the company has used it: 5.400. pounds of raw material in an optimal fashion, what is the highest price Barlow gompany should be willing to pay for an additional pound of materials