Barclay Bikes Manufactures and Sells Three Distinct Styles of Bicycles

question 36

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 contribution margin per composite unit.

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

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