6.3 - Managerial Accounting (3rd Edition) ISBN 978-0-07-782648-2: Chapter 6

Question - Reference attached photo

Biscayne's Rent-A-Ride rents two models of automobiles: the standard and the deluxe. Information follows: Rental price per day Variable cost per day Standard Deluxe $30.00 $38.00 10.50 5.20 Biscayne's total fixed cost is $18,500 per month Reguired: 1. Determine the contribution margin per rental day and contribution margin ratio for each model that Biscayne's offers. (Round your "Unit Contribution Margin" answers to 2 decimal places.) Deluxe Unit Contribution Margin per Day per Day Contribution Margin Ratio 0 0 2. Which model would Biscayne's prefer to rent? Deluxe Model Standard Model 3. Calculate Biscayne's break-even point if the product mix is 50/50. (Do not round intermediate calculations. Round your answer to the nearest whole number.) Break-Even Point Rental Days