Question: Please explai and show all work. Be sure final answer is correct. Thank you! Selling price Variable expenses: Direct materials Other variable expenses Total variable

Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses

Please explai and show all work. Be sure final answer is correct. Thank you!
Contribution margin Contribution margin ratio A $ 150 12 108 120 $

Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio A $ 150 12 108 120 $ 30 B 240 48 120 168 $ 72 c $ 200 18 140 158 $ 42 The same raw material is used in all three products. Barlow Company has only 5,400 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 bqcklog 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 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? 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 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 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 willing to pay for an additional pound of materials? Complete this question by entering your answers in the tabs below. Required 3 Required 4 Required I Required 2 Calculate the contribution margin per pound of the constraining resource for each product. c Contribution margin per pound of the constrained resource

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!