Question
In: Accounting
Barclay Enterprises manufactures and sells three distinct styles of bicycles: the Youth model sells for $400...
Barclay Enterprises manufactures and sells three distinct styles of bicycles: the Youth model sells for $400 and has a unit contribution margin of $260; the Adult model sells for $900 and has a unit contribution margin of $585; and the Recreational model sells for $1,040 and has a unit contribution margin of $676. The company's sales mix includes: 5 Youth models; 9 Adult models; and 6 Recreational models. If the firm's annual fixed costs total $9,490,000, calculate the firm's break-even point in total sales dollars.
Solutions
Expert Solution
So, the BEP (in $) is $14,600,440.
The problem can also be solved as below
The second solution is provided
just for your understanding. The difference in both solutions is
due to rounding off.
Hope you understood the solution. If you have any doubt. Please leave your doubt in the comment section so that I can clarify your doubt.
Thank you.
ekkarill92 answered 1 year agoRelated Solutions
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