Multiple Choice
Barclay Enterprises manufactures and sells three distinct styles of bicycles: the Youth model sells for $300 and has a unit contribution margin of $105; the Adult model sells for $850 and has a unit contribution margin of $450; and the Recreational model sells for $1,000 and has a unit contribution margin of $500. The company's sales mix includes: 5 Youth models; 9 Adult models; and 6 Recreational models. If the firm's annual fixed costs total $6,500,000, calculate the firm's break-even point in composite units (rounded to the nearest whole unit) .
A) 7,575 composite units.
B) 15,150 composite units.
C) 858 composite units.
D) 6,161 composite units.
E) 429 composite units.
Correct Answer:
Verified
Correct Answer:
Verified
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