Question: Check my workCheck My Work button is now enabledItem 5 Barlow Company manufactures three products A , B , and C . The selling price,
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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 $ $ $
Variable expenses:
Direct materials
Other variable expenses
Total variable expenses
Contribution margin $ $ $
Contribution margin ratio
The same raw material is used in all three products. Barlow Company has only 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 suppliers plant. Management is trying to decide which products to concentrate on next week in filling its backlog of orders. The material costs $ per pound. Assuming that Barlows estimated customer demand is units per product line, what is the maximum contribution margin the company can earn when using the pounds of raw material on hand?
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