3 and 4? 3. Assuming that Barlow's estimated customer demand is 600 units per product line, what is the maximum contribution margin thecompany can earn when using the 5,400 pounds of raw material on hand?4. A foreign supplier could furnish Barlow with additional stocks of the raw material at a substantial premium over the usual price.Assuming Barlow's estimated customer demand is 600 units per product line and that the company has used its 5,400 pounds of rawmaterial in an optimal fashion, what is the highest price Barlow Company should be willing to pay for an additional pound of materials?Complete this question by entering your answers in the tabs below. Barlow Company manufactures three products-A, B, and C. The selling price, variable costs, and contribution margin for one unit ofeach product follow:Selling priceVariable expenses:Direct materialsOther variable expensesTotal variable expensesContribution marginContribution margin ratioA$ 18018126144$ 3620%ProductB$ 2407296168$ 7230%C$ 22030140170$ 5023%The same raw material is used in all three products. Barlow Company has only 5,400 pounds of raw material on hand and will not beable 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) toconcentrate on next week in filling its backlog of orders. The material costs $6 per pound.

Maximum contribution margin is based on Pounds of Raw materials available and Contribution margin…

ling price -iable expenses: irect materials ther variable expenses al variable expenses tribution margin tribution margin ratio A $ 180 18 126 144 $36 20% Product B $ 240 72 96 168 $72 30% с $ 220 30 140 170 $ 50 23% ame raw material is used in all three products. Barlow Company has only 5,400 pounds of raw material on hand and will no- o obtain any more of it for several weeks due to a strike in its supplier's plant. Management is trying to decide which produc entrate on next week in filling its backlog of orders. The material costs $6 per pound.