Barlow Company manufactures three products-A, B, and C. The selling price, variable costs, and contribution margin for one unit of each product follow: A $ 180 Product B $ 270 $ 240 Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin 24 102 126 $ 54 80 90 170 $ 100 32 148 180 $ 60 Contribution margin ratio 308 37% 25% The same raw material is used in all three products. Barlow Company has only 6,600 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's 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. Required: 1. Calculate the contribution margin per pound of the constraining resource for each product. (Hint: use the DM cost in the table and the cost per pound given in the additional information to calculate how many pounds are used by each product.) 2. Assuming that Barlow has unlimited demand for each of its three products, what is the maximum contribution margin the company using the 6,600 pounds of raw material and? can 3. Assuming that Barlow's estimated customer demand is 500 units per product line, what is the maximum contribution margin the company can earn when using the 6,600 pounds of raw material on hand? (See the hint below if you need help.) 4. A foreign supplier could furnish Barlow with additional stocks of the raw material at a substantial premium over the usual price. Assuming Barlow's estimated customer demand is 500 units per product line and that the company has used its 6,600 pounds of raw material in an optimal fashion, what is the highest price Barlow Company should be willing to pay for an additional pound of materials? (See the hint below if you need help.)