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

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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 $ 160 $ 270 $ 210
Variable expenses:
Direct materials 168024
Other variable expenses 10890144
Total variable expenses 124170168
Contribution margin $ 36 $ 100 $ 42
Contribution margin ratio 23%37%20%
The same raw material is used in all three products. Barlow Company has only 5,700 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.

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