Biscayne rent a bike rents two models of automobiles the standard and deluxe. Information follows

	Standard	Deluxe
Rental price per day	$30.00	$38.00
Variable cost per day	10.50	15.20

Biscayne total fixed cost is $18,500 per month

Required

1. Determines the contribution margin per rental day and contribution margin ratio for each model that Biscayne offers.

2. Which model would Biscayne's perfer to rent. Explain the answer

3.Calculate Biscayne's break even point if the product mix is 50/50

4. Calculate the break even point id Biscayne product mix change so that the standard model is rented 75 percent of the time and the deluxe is rented only 25 percent.

5. Calculate the break even point of Biscayne product mix changes so that the standard model is rented 25 percent of the time and the deluxe is rented 75 percent.