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

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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 $ 300 $

440

 $ 360
Variable expenses:
Direct materials 30 66 36
Other variable expenses 150 154 198
Total variable expenses 180 220 234
Contribution margin $ 120 $ 220 $ 126
Contribution margin ratio 40 % 50 % 35 %

The same raw material is used in all three products. Barlow Company has only 4,600 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

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