Barclay Bikes Manufactures and Sells Three Distinct Styles of Bicycles

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 contribution margin per composite unit.

A) $1,055.
B) $1,950.
C) $1,255.
D) $7,575.
E) $1,500.