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QUESTION 9 * The following information relates to the next three questions. Barlow Company manufactures three products: X, Y, and Z. The demand for each product is 100 units. The selling price, variable costs, and contribution margin for one unit of each product follow: Product X Y Z $180 $270 $120 Selling price $ Total variable expenses Contribution margin 140 153 90 $40 $117 $30 Number of tests needed 5 9 3 Barlow has a machine which can test its products up to the maximum capacity of 1,080 tests with a fixed cost of $28,000. To maximize its profit, management is trying to decide which product(s) to concentrate in manufacturing, Required: In what order (which product first, second, and third) does the company have to make the products? O A. X ==> Z --> Y O B.Z --> X ==>Y OC.X==> Y ==> Z O D.Y --> Z -->X O E Y ==> X ==> QUESTION 10 Use the information given in the above question. y Barlow makes the best decision, how many units of Product Z will be produced OA. O units B. 40 units C. 60 units D. 100 units QUESTION 11 Use the information given in the above question Assume that Barlow has found that an outside company can provide a technology that can reduce the number of tests requited for product If this technology is used, Barlow can make each unit of Z with 2.5 teses, What is the maximum amount that Barlow would pay to the outside company in order to use this technology? O A $360 B. $30 OC. $10 O D. 50 (this technology does not provide any advantage to Barlow) QUESTION 12 Use the information given in Question 9. Ignore Questions 10 and 11. Further assume that Barlow has found that an outside contractor can do 90 tests for Barlow. What is the maximum price per test that Barlow can pay to the outside contractor? A. 58 OB. $10 OC $13 OD. $30 E. $40 OF. $117 O G. 948 OH. $70

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