Barlow Company manufactures three products: A B, and C. The seling price, variable costs, and contribution margin for one unit of each product follow: Product Seling price $210 $320 $300 Variable expenses: Direct materials Other variable expenses 16 152 64 160 24 231 Total variable expenses 168 224 255 Contribution margin $ 42 $ 96 $ 45 Contribution margin ratio 20% 30% 15% The same raw material is used in all three products. Barlow Company has only 4,800 pounds of raw material on hand and will not be able to obtain any more of it for several weeks due t supplier's plant. Management is trying to decide which product(s) to concentrate on next woek in filing its backlog of orders. The material costs $8 per pound. a strike in i Required: 1. Compute the amount of contribution margin that wil be obtained per pound of material used in each product. Contribution margin per unit Direct material cost per unit Direct material cost per pound Pounds of material required per unit Contribution margin per pound

Barlow Company manufactures three products: A B, and C. The seling price, variable costs, and contribution margin for one unit of each product follow: Product Seling price $210 $320 $300 Variable expenses: Direct materials Other variable expenses 16 152 64 160 24 231 Total variable expenses 168 224 255 Contribution margin $ 42 $ 96 $ 45 Contribution margin ratio 20% 30% 15% The same raw material is used in all three products. Barlow Company has only 4,800 pounds of raw material on hand and will not be able to obtain any more of it for several weeks due t supplier's plant. Management is trying to decide which product(s) to concentrate on next woek in filing its backlog of orders. The material costs $8 per pound. a strike in i Required: 1. Compute the amount of contribution margin that wil be obtained per pound of material used in each product. Contribution margin per unit Direct material cost per unit Direct material cost per pound Pounds of material required per unit Contribution margin per pound

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 1PA: The following product Costs are available for Haworth Company on the production of chairs: direct...

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