Question: The same raw material is used in all three products Barlow Company has only 11,000 kilograms of material on hand and will not be able
The same raw material is used in all three products Barlow Company has only 11,000 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. The material costs $4 per kilogram. Required: Compute the amount of contribution margin that will be obtained per kilogram of material used in each product (Do not round Intermediate calculations and round your final answers to 2 decimal pieces) Which orders would you recommend that the company work on rent week-the orders tor product A, product B, product C? Product A Product B Product C 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? (Round intermediate calculation to 2 decimal places and round your answer to 2 decimal places.)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
