i have problem in part 4 O McGraw-Hill Connect - ACCT X E Class ACCT 92 in Connectx M MHE Readerx +O A https://player-ui.mheducation.com/#/epub/sn_ed42c#epubcfi(%2F6%2F352[data-uuid-fa092cfe0e164b0fa7482dc9b5157d88]!%2F4%2F2[data... Oli O80%uns oruer onouru ume speciar oruer ve uccepieu at unIs pricerEXERCISE 9-6Utilizing a Constrained Resource [LO2 – CC7, 8]Barlow Company manufactures three products: A, B, and C. The selling price, variable costs, and contribution margin for one unit of eachproduct follow:ProductBSelling price$110$155$140Less: Variable expenses:Direct materials185424Direct labour202020Other variable expenses452766Total variable expenses83101110Contribution margin$27$ 54$ 30The same raw material is used in all three products and costs $6 per kilogram. Barlow Company has only 5,000 kilogramsof material onhand and will not be able to obtain any more material for several weeks due to a strike in its supplier's plant. Management is trying to decidewhich product(s) to concentrate on next week in filling its backlog of orders. Direct labour costs $12 per hour.Required:1. Compute the amount of contribution margin that will be obtained per kilogram of material used in each product.2. Which orders would you recommend that the company work on next week-the orders for product A, product B, or product C? Showcomputations.3. A foreign supplier could furnish Barlow with additional stocks of the raw material at a substantial premium over the usual price. If thereis unfilled demand for all three products, what is the highest price that Barlow Company should be willing to pay for an additionalkilogram of materials?4. Assume that direct labour becomes a constraint instead of direct materials. How will your answer to Requirement (2) above change?Page 436EXERCISE 9 77:54 PMO Type here to search2 A 4x ENG2020-11-10

If there is a constraint in labor , then we need to find out contribution per direct labor hour.…

Answered: 4. Assume that direct labour becomes a…

4. Assume that direct labour becomes a constraint instead of direct materials. How will your answer to Requirement (2) above change?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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