Barclay Enterprises Manufactures and Sells Three Distinct Styles of Bicycles

question 119

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 contribution margin per composite unit.

• A) $1,055.
• B) $1,950.
• C) $1,255.
• D) $7,575.
• E) $1,500.

---

Definitions:

Abnormal Return

Returns on a security that differ from the expected rate of return, often adjusted for risk.

Bogey Portfolio

A reference portfolio used to gauge the performance of an investment portfolio.

Asset Classes

Categories of assets, such as stocks, bonds, real estate, and cash, that exhibit similar characteristics, behave similarly in the marketplace, and are subject to the same laws and regulations.

Investments

Assets or items acquired with the goal of generating income or appreciating in value.