Barclay Bikes Manufactures and Sells Three Distinct Styles of Bicycles

question 54

Multiple Choice

Barclay Bikes 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 selling price per composite unit.

• A)$1,255.
• B)$15,150.
• C)$7,575.
• D)$1,950.
• E)$13,200.

---

Definitions:

Early Exposure

The concept of introducing a child or individual to certain stimuli or environments at a young age to influence outcomes later in life.

Public Subsidy

Financial support provided by the government to individuals, organizations, or industries to encourage activities deemed beneficial for the public.

Tuition Payment

The process of paying fees for instruction, especially at a college, university, or private school.

Nonpublic School

An educational institution that operates independently of the public school system, often funded through tuition, private grants, or religious organizations.