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Biscayne's Rent-A-Ride rents two models of automobiles the standard and the deluxe. Information follows: Standard Deluxe Rental price per $48.00 $58.00 Variable cost per 14.40
Biscayne's Rent-A-Ride rents two models of automobiles the standard and the deluxe. Information follows: Standard Deluxe Rental price per $48.00 $58.00 Variable cost per 14.40 20.30 Biscayne's total fixed cost is $17,094 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.) Contribution Margin- Contribution per sol Deyl 37.70 Day a l 2. Which model would Biscayne's prefer to rent? "Dolucoe Model Standard Model 3. Calculate Biscayne's break-even point 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 point if Biscayne's product mix changes so that the standard model is rented 75 percent of the time and the deluxe 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 point if Biscayne's product mix changes so that the standard model is rented 25 percent of the time and the deluxe model is rented for 75 percent. (Do not round intermediate calculations. Round your final answer to the nearest whole number.) Break- Even Rental
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