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 selling price per composite unit.

Selling price per composite unit shall be = $15,150

Explanation:

Provided information,

There are three models,

Youth, Adult and Recreational

Details for each product are:

Youth Selling Price per unit = $300

Adult Selling Price per unit = $850

Recreational Selling Price per unit = $1,000

Sales mix is as follows:

Youth = 5, hence Selling Value = 5 $300 = $1,500

Adult = 9, hence Selling Value = 9 $850 = $7,650

Recreational = 6, hence Selling Value = 6 $1,000 = $6,000

Total Selling Value per sales mix = $1,500 + $7,650 + $6,000 = $15,150

Company's annual fixed cost = $6,500,000

Selling price per composite unit shall be = $15,150

answer; it can vividly demonstrate product attributes and persuasively explain their corresponding consumer benefits;

the answer is d

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