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.

Recognize the effects of adjusting entries on financial statements.

Differentiate between accrued expenses and revenues and their impact on financial statements.

Analyze the effects of cash transactions that create liabilities or assets on the accounting equation.

Comprehend and apply the correct journal entries for various types of accounting adjustments including accruals, deferrals, and adjustments for prepaid expenses.

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Definitions:

Unconscionability Rule

A legal principle that prevents the enforcement of contracts or terms that are unjust, excessively oppressive, or grossly unfair to one party.

Uniform Commercial Code

A comprehensive set of laws governing all commercial transactions in the United States, intended to harmonize laws across the states.

Sale of Goods

A commercial transaction in which a seller transfers ownership of tangible personal property to a buyer for a price.

Duress

Compulsion by threat or force, often used in legal contexts where a person's action is excused because it was performed under coercion.