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

Barlow Company manufactures three productsA, B, and C. The selling price, variable costs, and contribution...

90.2K

Verified Solution

Question

Accounting

Barlow Company manufactures three productsA, B, and C. The selling price, variable costs, and contribution margin for one unit of each product follow:

Product
A B C
Selling price $ 150 $ 240 $ 200
Variable expenses:
Direct materials 12 48 24
Other variable expenses 108 120 152
Total variable expenses 120 168 176
Contribution margin $ 30 $ 72 $ 24
Contribution margin ratio 20 % 30 % 12 %

The same raw material is used in all three products. Barlow Company has only 5,400 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 $12 per pound.

Required:

3. Assuming that Barlows estimated customer demand is 600 units per product line, what is the maximum contribution margin the company can earn when using the 5,400 pounds of raw material on hand?

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: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

[The following information applies to the questions displayed below.] Tony and Suzie have purchased land for a...

Accounting
Q

Researchers selected a simple random sample of 4048 medical records of adults diagnosed with gum disease....

Basic Math
Q

a 3000 resistance If a 20V 200 Hz ac source is connected across the combination...

Physics
Q

Question 5 A block of mass of 2 kg slides on an inclined plane that...

Physics
Q

f x 2 ln sin

Calculus
Q

Write the following in polar form (angles in degrees).12.61 miles, 30 north of east.1.66 miles,...

Algebra
Q

In cell B36, caloulate the current ratio. [1 point) In cell B37, calculate...

Accounting
Q

Troy Engines, Limited, manufactures a variety of engines for use in heavy equipment. The company...

Accounting
Q

1. Cul de los siguientes es ms probable que utilice el costeo por procesos? ...

Accounting
Q

Letitia Corp. manufactures kitchen timers. The company incurred the following costs to produce 25,000 timers...

Accounting
Q

(The following information applies to the questions displayed below.] You have just been hired as...

Accounting
Q

Imagine your company operating for the first month of January 2024, creating 10 realistic transactions...

Accounting