FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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I would like help answering this accounting problem. Screen shots are included. Thank you

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
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Transcribed Image Text: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
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