1) | |||
A | B | C | |
Contribution margin per unit | $108 | $180 | $119 |
Direct material cost per unit | $36 | $72 | $42 |
Direct material cost per pound | $6 | $6 | $6 |
Pounds of material required per unit ($36/$6); ($72/$6); ($42/$6) | 6 | 12 | 7 |
Contribution margin per pound ($108/6); ($180/12); ($119/7) | $18 | $15 | $17 |
2a) | |||
A | B | C | |
Contribution margin per pound | $18 | $15 | $17 |
Pounds of materials available | 4,200 | 4,200 | 4,200 |
Total contribution margin ($18 * 4,200); ($15 * 4,200); ($17 * 4,200) | $75,600 | $63,000 | $71,400 |
2b) | |||
Product A would be recommended to work on next week because the total contribution margin is more for product A. | |||
3) | |||
Maximum amount per pound is $24 ($6 + $18). |
Barlow Company manufactures three products: A, B, and C. The selling price, variable costs, and contribution...
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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 B Seing price $200 $300 $280 Variable expenses Direct materials Other variable expenses 28 70 35 112110175 Total variable expenses 140 $ 60 180 $120 210 $ 70 Contribution margin Contribution margin ratio 30% 40% 25% The same raw materials used in all three products. Barlow Company has only 5.600 pounds of raw material on...
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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 В $ 270 $ 180 $ 240 32 Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio 180 $ 54 $ 190 $ 60 30% 378 25% The same raw material is used in all three products. Barlow Company has only 6,600 pounds of raw material on hand...
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 AB $180 $240 $240 Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio 18 126 144 $ 36 20% 72 96 168 $ 72 30% 27 177 204 $ 36 15% The same raw material is used in all three products. Barlow Company has only 5,400 pounds of...
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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 A B C Selling price $ 160 $ 270 $ 240 Variable expenses: Direct materials 16 80 32 Other variable expenses 108 90 148 Total variable expenses 124 170 180 Contribution margin $ 36 $ 100 $ 60 Contribution margin ratio 23 % 37 % 25 % The same raw material is used in all three...
Barlow Company manufactures three products-A, B, and C. The selling price, variable costs, and contribution margin for one unit of each product follow: A $ 160 Product B $ 270 с $ 240 Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin 16 108 124 80 90 32 148 180 170 $36 $ 100 $ 60 23% 37% 25% Contribution margin ratio The same raw material is used in all three products. Barlow Company has...
Barlow Company manufactures three products-A, B, and C. The selling price, variable costs, and contribution margin for one unit of each product follow: Α $ 180 Product в $ 300 с $ 240 18 90 27 Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin 126 144 120 210 $ 90 177 204 $36 $ 36 20% 30% 15% Contribution margin ratio The same raw material is used in all three products. Barlow Company has...
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 A B C Selling price $ 180 $ 270 $ 240 Variable expenses: Direct materials 24 80 32 Other variable expenses 102 90 148 Total variable expenses 126 170 180 Contribution margin $ 54 $ 100 $ 60 Contribution margin ratio 30 % 37 % 25 % The same raw material is used in all three...