Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. barlow company manufactures three products: a, b,

Barlow Company manufactures three products: A, B, and C. The selling price, variable costs, and...

80.2K

Verified Solution

Question

Accounting

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 suppliers 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:
1.

Compute the amount of contribution margin thatimage

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Psychology
1.2K views

Using the below articles: In two or three sentences identify a psychological perspective and explain how it...

Mechanical Engineering
1.2K views

An orthogonal cutting operation is being conducted with the following parameters: width of cut =1mm; depth of...

General Management
1.2K views

“Whistle-Blower Suit Accuses Visiting Nurse Service of Fraud” New York Times 23 Sept. 2016 What is this...

Biology
1.2K views

The feeding and growth phase of a protozoal life cycle is called the Otrophozoite O...

Biology
1.2K views

What features distinguish small regulatory RNA SRNA from cis antisense RNA asRNA Features 6 items...

Basic Math
1.2K views

On the interval [0, 2?) determine which angles are not in the domain of the...

Basic Math
1.2K views

The weights of a group of first-graders at a local elementary school were normally distributed....

Statistics
1.2K views

a Consider a t distribution with 8 degrees of freedom Compute P 1 44 t...

Calculus
1.2K views

Consider the function f x 2 sin x 3 2 This function has two inflection...

Algebra
1.2K views

4 Let g x 2x and h x x 4 a hog 2 b goh...

Accounting
1.2K views

der Company bought a building and the land on which the building is located for...

Accounting
1.2K views

Teal Mountain Chocolatiers Ltd. began operations on January 1, 2024. During its first year, the...