3.4 Tim-Buck-II rents jet skis at a beach resort. There are three models available to rent: Junior, Adult, and Expert. The rental price and variable costs for these three models are as follows:

The current product mix is 5:4:1. The three models share total fixed costs of $114,750 A. Calculate the sales price per composite unit.

B. What is the contribution margin per composite unit?

C. Calculate Tim-Buck-II’s break-even point in both dollars and units.

D. Using an income statement format, prove that this is the break-even point.