Wayward Enterprises Manufactures and Sells Three Distinct Styles of Bicycles

question 140

Multiple Choice

Wayward 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 sales dollars.

• A) $13,250,000.
• B) $13,000,000.
• C) $12,750,000.
• D) $12,900,050.
• E) $12,750,625.

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Definitions:

Economic Inequality

The unequal distribution of wealth, income, or resources among individuals, communities, or countries, leading to disparities in living standards and opportunities.

Quasi-War

An undeclared naval conflict between the United States and France from 1798 to 1800.

1790s

A decade marked by the early stages of the French Revolution and significant developments in the political landscape of the United States.

America

Often referring to the United States, a country in North America consisting of 50 states and characterized by its diverse populace and significant global influence.