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Biscayne's Rent-A-Ride rents two models of automobiles: the standard and the deluxe. Information follows: Standard Deluxe price per $64.00 $72.00 day Variable cost per 27.50
Biscayne's Rent-A-Ride rents two models of automobiles: the standard and the deluxe. Information follows: Standard Deluxe price per $64.00 $72.00 day Variable cost per 27.50 32.20 day Biscayne's total fixed cost is $27,000.00 per month. Required: 1. Determine Biscayne's new break-even point in each of the following independent scenarios: a. Product mix is 40/60. (Do not round your intermediate calculations. Round your answer to the nearest whole number.) Rental b. Sales price increases on both models by 15 percent. (Assume a product mix of 50150.) (Do not round your intermediatecalculations. Round your answer to the nearest whole number.) Rental Days c. Fixed costs increase by $5,600. (Assume a product mix of 50150.) (Do not round your intermediate calculations. Round your answer to the nearest whole number.) Rental Days d. Variable costs increase by 20 percent. (Assume a product mix of 5050.) (Do not round your intermediate calculations. Round your answer to the nearest whole number.) Rental Days
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