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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