Refer to the information presented in E6-14 for Robbie’s Rent-A-Ride.

Required:

1.Determine Robbie’s new break-even point in each of the following independent scenarios.

a. Sales mix is 40/60.

b. Sales price increases on both models by 20 percent. (Assume a sales mix of 50/50.)

c. Fixed costs increase by \($5,200\). (Assume a sales mix of 50/50.)

d. Variable costs increase by 30 percent.

Data from E6-14

Robbie’s Rent-A-Ride rents two models of automobiles: the standard and the deluxe. Information follows:

Robbie’s total fixed cost is \($18,500\) per month.

Transcribed Image Text:

Standard Deluxe Rental price per day Variable cost per day $25.00 $35.00 10.50 15.80