Question: Management is concerned about the loss and is considering dropping the product line. If the product line is dropped, a job has to be created

be created elsewhere for a long-term employee currently earning an annual salary

$of \$ \\$ 93,000 \$. Required: Calculate the increase or decrease in$

Management is concerned about the loss and is considering dropping the product line. If the product line is dropped, a job has to be created elsewhere for a long-term employee currently earning an annual salary of \$ \\$ 93,000 \$. Required: Calculate the increase or decrease in the operating income in both alternatives. Should the ladies' accessories product line be dropped? Yes No 2. Which orders would you recommend that the company work on next week-the orders for product A, product B or product C? Product A Product B Product C 3. A foreign supplier could furnish Barlow with additional stocks of the raw material at a substantial premium over the usual price. If there is unfilled demand for all three products, what is the highest price that Barlow Company should be willing to pay for an additional kilogram of materials? (Do not round intermediate calculations. Round your answer to 2 decimal places.) 4. Assume that direct labour becomes a constraint instead of direct materials. How will your answer to Requirement (2) above change? Product A Product B Product 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: The same raw material is used in all three products and costs \$ \\$ 4 \$ per kilogram. Barlow Company has only 12,000 kilograms of material on hand and will not be able to obtain any more material 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. Direct labour costs \\$26 per hour. Required: 1. Compute the amount of contribution margin that will be obtained per kilogram of material used in each product. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Your Retail Store's accountant prepared the following income statement for the ladies' accessories product line: Management is concerned about the loss and is considering dropping the product line. If the product line is dropped, a job has to be created elsewhere for a long-term employee currently earning an annual salary of \$ \\$ 93,000 \$. Required: Calculate the increase or decrease in the operating income in both alternatives

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