1 answer

Barlow Company manufactures three products-A, B, and C. The selling price, variable costs, and contribution margin...

Question:

Barlow Company manufactures three products-A, B, and C. The selling price, variable costs, and contribution margin for one unCalculate the contribution margin per pound of the constraining resource for each product Contribution margin per pound of th

Assuming that Barlow has unlimited demand for each of its three products, what is the maximum contribution margin the companyAssuming that Barlows estimated customer demand is 600 units per product line, what is the maximum contribution margin the cA foreign supplier could furnish Barlow with additional stocks of the raw material at a substantial premium over the usual pr

Barlow Company manufactures three products-A, B, and C. The selling price, variable costs, and contribution margin for one unit of each product follow: Product Selling price Variable expenses: 180 $240 $220 72 90 144 168 Direct materials 18 126 Other variable expenses Total variable expenses Contribution margin Contribution margin ratio 140 170 $ 36 72 50 20% 30% 23% 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 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 $6 per pound Required 1. Calculate the contribution margin per pound of the constraining resource for each product. 2. Assuming that Barlow has unlimited demand for each of its three products, what is the maximum contribution margin the company can earn when using the 5,400 pounds of raw material on hand? 3. Assuming that Barlow's 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? 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 600 units per product line and that the company has used its 5,400 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?
Calculate the contribution margin per pound of the constraining resource for each product Contribution margin per pound of the constrained resource
Assuming that Barlow has unlimited demand for each of its three products, what is the maximum contribution margin the company can earn when using the 5,400 pounds of raw material on hand? aximum contribution margin
Assuming that Barlow's 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? Maximum contribution margin
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 600 units per product line and that the company has used its 5,400 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? Show less Highest price willing to pay per pound

Answers

1) Contribution margin per pound

A B C
Contribution margin per unit 36 72 50
Pound per unit 3 12 5
Contribution margin per pound 12 6 10

2) Maximum contribution = 5400*12 = 64800

3) Maximum contribution

Pound Unit Contribution margin
Product A 600*3 = 1800 600 1800*12 = 21600
Product C 600*5 = 3000 600 3000*10 = 30000
Product B 600 600/12 = 50 600*6 = 3600
Total 55200

Maximum contribution margin = $55200

4) Highest price = 6+6 = $12 per pound

.

Similar Solved Questions

1 answer
Using the PRECEDE model 1.)What factor or issue influences smoking? Example: What behavioral determinants are barriers...
Using the PRECEDE model 1.)What factor or issue influences smoking? Example: What behavioral determinants are barriers to achieving the desired results? What environmental influences are obstacles to bringing about the desired results? 2.) what are the factors that will create the behavioral and env...
1 answer
Write a pseudocode description of the printLCS () algorithm, which prints the longest common subs...
Write a pseudocode description of the printLCS () algorithm, which prints the longest common subsequence of two strings x and y. Your algorithm should take as input the completed ïïcs Π integer array of longest common subsequence lengths, and the two strings x and y. (So, you do not hav...
1 answer
Due to erratic sales of its sole product-a high-capacity battery for laptop computers, Comp Batteries Corporation...
Due to erratic sales of its sole product-a high-capacity battery for laptop computers, Comp Batteries Corporation has been experiencing difficulty for some time. The company's contribution format income statement for the most recent month is given below: Sales (19,500 units x $34 per unit) Varia...
1 answer
1. If a legally enforceable contract includes a binding arbitration clause, the parties to the contract...
1. If a legally enforceable contract includes a binding arbitration clause, the parties to the contract under which the dispute arose can go through litigation if one of parties decides to take the dispute to court. True False 2. Veruca Salt, a Michigan resident, buys a used car from Rick's Used...
1 answer
“not right but left half plane.” complex analysis CC be defined by or each real number...
“not right but left half plane.” complex analysis CC be defined by or each real number a, let fo : Prove that if a > 1, then fa has exactly one zero in the right half-plane E C:Ra)o and that this zero is a real number...
1 answer
Input a number [1-50] representing the size of the shape and then a character [x,b,f] which...
Input a number [1-50] representing the size of the shape and then a character [x,b,f] which represents the shape i.e. x->cross, b->backward slash, or f->forward slash. Here are 4 examples which give the 2, inputs with the shape of the result directly below. Note: Even number outputs are dif...
1 answer
11 10/19 26 Question (6 points) See page 1069 Provide a mechanism for the crossed Claisen...
11 10/19 26 Question (6 points) See page 1069 Provide a mechanism for the crossed Claisen condensation shown here by providing the missing structures (including the final product) and curved arrows. Your structures should include all nonzero formal charges and lone pairs of electrons. When drawing t...
1 answer
Please I want only the answer without the solution and correct answer QUESTION 12 The formula...
please I want only the answer without the solution and correct answer QUESTION 12 The formula for the change in electric potential energy for a charge moving between charged parallel plates is U = Ed or U = kQq/ U = Ed v=kQ/ U =kQqr...
1 answer
Any substance that produces a change in function when administered to living organisms.
any substance that produces a change in function when administered to living organisms....
1 answer
Poss 咯.enna) a) ha o a沽(aaat leta anos arr aSEb Poss 咯.enna) a) ha o a沽(aaat leta anos arr aSEb
Poss 咯.enna) a) ha o a沽(aaat leta anos arr aSEb Poss 咯.enna) a) ha o a沽(aaat leta anos arr aSEb...
1 answer
You wake up one morning to find that you have been abducted by aliens. In a...
You wake up one morning to find that you have been abducted by aliens. In a desperate escape attempt, you steal a small spacecraft and try to run away. Once you leave the alien saucer, you realize you are in orbit around an unknown planet with a very large moon. Using the distances and masses of t...
2 answers
There is a proton and antiproton that collide head-on with equal kinetic energies. Two gamma rays...
There is a proton and antiproton that collide head-on with equal kinetic energies. Two gamma rays with wavelengths of 1 fm are produced. Calculate the Kinetic energy of the proton....
1 answer
Operating system CS604
Question: 3Solve each of the followingquestion:a)If the total number of framesin the main memory are 64 and the size of each frame is 64 bitsthen what will be the size of mainmemory in bytes?b)Calculate the size of the pagetable (in bytes) if there are 8 pages and there are 256 frames inthe main mem...
1 answer
4. A railroad car that weighs 20,000 lb is traveling eastward with a velocity whose magni-...
4. A railroad car that weighs 20,000 lb is traveling eastward with a velocity whose magni- tude is 5 fps. A second car, on the same track, that weighs 40,000 lb is also traveling in an easterly direction with a velocity of 7.81 fps. When the cars collided, they became coupled together and then both ...
2 answers
Marie earned $225 last week. If she worked 18 hours, how much was she paid per hour?
Marie earned $225 last week. If she worked 18 hours, how much was she paid per hour?...