Barlow Company manufactures three products A, B and C. The selling price, variable costs and...
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Barlow Company manufactures three products A, B and C. The selling price, variable costs and contribution margin for one unit of each product follow $152.00 Product B $215.00 $210.00 Selling price Less: Variable expenses: Direct materials Direct labour Other variable expenses Total variable expenses Contribution margin 28.00 16.20 75.20 120.40 $131.60 111.00 83.00 15.20 16.20 37.00 20.50 164:20 109.20 $ 50.00 5.40.30 The same raw material is used in all three products and costs $4 per kilogram. Barlow company has only 12.000 ilograms of matena on hand and will not be able to obtain any more material for several weeks due to a strike in its super's plant Management is trying to decide which products to concentrate on next week in filling its backlog of orders. Direct labour costs $26 per hour Required: 1. Compute the amount of contribution margin that will be obtained per kilogram of material used in each oroduct Do not
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