Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Biscayne's A Ride rent two models of mobles the standard and the normation follows: Har proper day www cost per day $70.00 $0.00 32.00 Biscayne's

image text in transcribed
image text in transcribed
image text in transcribed
Biscayne's A Ride rent two models of mobles the standard and the normation follows: Har proper day www cost per day $70.00 $0.00 32.00 Biscayne's red cost is $33,294 per month Required 1. Determine the contribution margin per rental day and contation margin ratio for each modela Baye's offers. Round your contributin Margir answers to decimal places) Standard Del Unt Contribution Marin per Day Contribution or 2. Which model would Biscayne's prefer to rest? O Deluxe Mode O Standard Model 3. Calculate care pot retos (De not round intermediate cal. Round your final to the nearest whole number Raw Days Cakrate the break event Baye's product is changes so that the mandard model is rented percent of time and the demais rented only percent (entround werden. Round your final to the area whole number Candle the break even proces produto canesthesied 25 percent of the more for en Derendistrito Fend your answer to the whole Biscayne's Rent-A-Ride rents two models of automobiles: the standard and the deluxe Information follows: Standard Deluxe Rental price per day $70.00 $80.00 Variable cost per day 26.60 32.00 Biscayne's total fixed cost is $33,294 per month Required: 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.) Standard Deluxe Unit Contribution Margin Contribution Margin Ratio per Day % per Day % 2. Which model would Biscayne's prefer to rent? O Deluxe Model O Standard Model 3. Calculate Biscayne's break even point if the product mix is 50/50. (Do not round intermediate calculations. Round your final answer to the nearest whole number.) Break Even Point Rental Days 4. Calculate the break even pointi Biscayne's product mix changes so that the standard model is rented 75 percent of the time and the dele model is rented for only 25 percent. (Do not round Intermediate calculations. Round your final answer to the nearest whole number) Break Even Point Rental Days 5. Calculate the break-even pointi Biscayne's product mix changes to that the standard model is rented 25 percent of the time and the dele model is rented for 75 percent (Do not round Intermediate calculations. Round your final answer to the nearest whole number) Pantal Days

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

The c2 value is: (a) 12.162 (b) 21.516 (c) 22.305 (d) 525

Answered: 1 week ago

Question

restricted entities include select all that apply

Answered: 1 week ago