Barclay Bikes manufactures and sells three distinct styles of bicycles: the Youth model sells for $390 and has a unit contribution margin of $150; the Adult model sells for $940 and has a unit contribution margin of $495; and the Recreational model sells for $1,090 and has a unit contribution margin of $545. The company's sales mix includes: 5 Youth models; 9 Adult models; and 6 Recreational models. If the firm's annual fixed costs total $6,590,000, calculate the firm's contribution margin per composite unit.

Multiple Choice

• $1,325.
• $2,310.
• $1,480.
• $8,475.
• $750.