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 $184 $258 $250
- Variable expenses:
- Direct materials 20 84 16
- Other variable expenses 100 74 144
- Total variable Expense 120 158 160
- Contribution margin $64 $100 $90
- Contribution margin ratio 34.78% 38.76% 36%
The same raw material is used in all three products. Barlow Company has only 5,000 pounds of raw material on hand and will not be able to obtain any more of it for several weeks due to a strike in its supplier's plant. Management is trying to decide which product(s) to concentrate on next week in filling its backlog of orders. The material costs $2 per pound.
Requirement 1:
Compute the amount of contribution margin that will be obtained per pound of material used in each product. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)
A B C
Contribution margin $ $ $