Question

Barclay Enterprises manufactures and sells three distinct styles of bicycles: the Youth model sells for $320...

Barclay Enterprises manufactures and sells three distinct styles of bicycles: the Youth model sells for $320 and has a unit contribution margin of $115; the Adult model sells for $870 and has a unit contribution margin of $460; and the Recreational model sells for $1,020 and has a unit contribution margin of $510. The company's sales mix includes: 5 Youth models; 9 Adult models; and 6 Recreational models. If the firm's annual fixed costs total $6,520,000, calculate the firm's break-even point in composite units (rounded to the nearest whole unit).

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Answer #1

Therefore, the firm's break-even point in composite units is 16,772

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