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Calculate the firm break-even point in composite units

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Reference no: EM132537770

Question 1: Barclay 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 composite units (rounded to the nearest whole unit).

Option A. 429 composite units.

Option B. 15,150 composite units.

Option C. 858 composite units.

Option D. 6,161 composite units.

Option E. 7,575 composite units.

Reference no: EM132537770

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