Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Barclay Bikes manufactures and sells three distinct styles of bicycles: the Youth model sells for $580 and has a unit contribution margin of $175; the
Barclay Bikes manufactures and sells three distinct styles of bicycles: the Youth model sells for $580 and has a unit contribution margin of $175; the Adult model sells for $990 and has a unit contribution margin of $520; and the Recreational model sells for $1420 and has a unit contribution margin of $570. The company's sales mix includes: 5 Youth models; 9 Adult models; and 6 Recreational models. If the firm's annual fixed costs total $6,640,000, calculate the firm's contribution margin ratio per composite unit (rounded to the nearest whole percentage). 0227% 0 42% 0 44% O O 30% O 0 53% Question 35 2 pts Bluebird Mfg. has received a special one-time order for 15,000 bird feeders at $4.00 per unit. Bluebird currently produces and sells 75,000 units at $8.00 each. This level represents 80% of its capacity. These bird feeders would be marketed under the wholesaler's name and would not affect Bluebird's sales through its normal channels. Production costs for these units are $5.00 per unit, which includes $2.75 variable cost and $2.25 fixed cost. If Bluebird accepts this additional business, the effect on net income will be: 0 $41,250 decrease. 0 $60,000 increase. O $15,000 decrease. 0 $41,250 increase. 0 $18,750 increase. Question 3) 2 pts Bricktan Inc. makes three products, basic, classic, and deluxe. The maximum Bricktan can sell is 730,000 units of basic, 540,000 units of classic, and 270,000 units of deluxe. Bricktan has limited production capacity of 150,000 hours. It can produce 10 units of basic, 8 units of classic, and 4 units of deluxe per hour. Contribution margin per unit is $15.00 for the basic, $25.00 for the classic, and $55.00 for the deluxe. What is the most profitable sales mix for Bricktan Inc.? 0 300,000 basic, 270,000 classic and 540,000 deluxe. 0 1,200,000 basic, 0 classic and 270,000 deluxe. 0 73,000 basic, 540,000 classic and 540,000 deluxe. 0 270,000 basic, 540,000 classic and 270,000 deluxe. O 150,000 basic, 540,000 classic and 270,000 deluxe
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started