Barlow Company manufactures three products: X, Y, and Z. Unit data for each product is: X Z Selling price $90 $140 $120 Variable expenses $62 $84 $90 Contribution $28 $56 $30 margin Pounds used per 10 lbs 16 lbs 6 lbs unit The same raw material is used in all three products. Barlow has 10,000 pounds of the raw material available and will not be able to obtain any more for several weeks. As a result, Barlow will not be able to meet the demand for its products. In what order should Barlow manufacture the products to make the most profitable use of the raw material available? OZ, Y, X OX, Y, Z OYXZ OzXY

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Barlow Company manufactures three products: X, Y, and Z. Unit data for each product is:
X
Z
Selling price
$90
$140
$120
Variable expenses
$62
$84
$90
Contribution
$28
$56
$30
margin
Pounds used per
10 lbs
16 lbs
6 lbs
unit
The same raw material is used in all three products. Barlow has 10,000 pounds of the raw material available
and will not be able to obtain any more for several weeks. As a result, Barlow will not be able to meet the
demand for its products. In what order should Barlow manufacture the products to make the most profitable
use of the raw material available?
OZ, Y, X
OX, Y, Z
OYXZ
OzXY
Transcribed Image Text:Barlow Company manufactures three products: X, Y, and Z. Unit data for each product is: X Z Selling price $90 $140 $120 Variable expenses $62 $84 $90 Contribution $28 $56 $30 margin Pounds used per 10 lbs 16 lbs 6 lbs unit The same raw material is used in all three products. Barlow has 10,000 pounds of the raw material available and will not be able to obtain any more for several weeks. As a result, Barlow will not be able to meet the demand for its products. In what order should Barlow manufacture the products to make the most profitable use of the raw material available? OZ, Y, X OX, Y, Z OYXZ OzXY
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