Solution-Barlow company manufactures three products a b and

Barlow company manufactures three products a b and c

Reference no: EM131015542

Barlow Company manufactures three products: A, B, and C. The selling price, variable costs, and contribution margin for one unit of each product follow:

	Product
	A			B			C
Selling price	$	240		$	360		$	320

Variable expenses:
Direct materials		24			72			32
Other variable expenses		120			108			176

Total variable expenses		144			180			208

Contribution margin	$	96		$	180		$	112

Contribution margin ratio		40	%		50	%		35	%

The same raw material is used in all three products. Barlow Company has only 4,400 pounds of raw material 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 material costs $8 per pound.

Required: 1a - Compute the amount of contribution margin that

Reference no: EM131015542

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Barlow company manufactures three products a b and c : Barlow Company manufactures three products: A, B, and C. The selling price, variable costs, and contribution margin for one unit of each product follow:

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Barlow company manufactures three products a b and c

Reference no: EM131015542

Reference no: EM131015542

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