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Calculate the firm break-even point in composite units

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Question - 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).

a: 858 Composite Units

b: 15,150 Composite Units

c: 6,161 Composite units

d: 7,575 Composite units

e: 429 Composite units

Reference no: EM132600519

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