Barclay Enterprises Manufactures and Sells Three Distinct Styles of Bicycles

question 90

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 ratio per composite unit (rounded to the nearest whole percentage) .

• A) 35%
• B) 50%
• C) 53%
• D) 200%
• E) 40%

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Definitions:

Service

The action or process of serving or providing assistance to others, often in the context of customers or clients.

Estoppel

A rule whereby a person may not deny the truth of a statement of fact made by him or her when another person has relied and acted upon the statement.

Consideration

The benefit or value that must be exchanged between parties to form a valid contract.

Common Law

A legal system based on precedent and court decisions rather than written laws or statutes.