Question
Biscaynes Rent-A-Ride rents two models of automobiles: the standard and the deluxe. Information follows: Standard Deluxe Rental price per day $ 60.00 $ 68.00 Variable
Biscaynes Rent-A-Ride rents two models of automobiles: the standard and the deluxe. Information follows: Standard Deluxe Rental price per day $ 60.00 $ 68.00 Variable cost per day 25.50 30.20 Biscaynes total fixed cost is $26,000 per month. Required: Determine Biscaynes new break-even point in each of the following independent scenarios: Product mix is 40/60. Sales price increases on both models by 20 percent. (Assume a product mix of 50/50.) Fixed costs increase by $5,200. (Assume a product mix of 50/50.) Variable costs increase by 30 percent. (Assume a product mix of 50/50.)
Determine Biscaynes new break-even point for the following independent scenario: Product mix is 40/60. Note: Do not round your intermediate calculations. Round your answer to the nearest whole number.
Determine Biscaynes new break-even point for the following independent scenario: Sales price increases on both models by 20 percent. (Assume a product mix of 50/50.) Note: Do not round your intermediate calculations. Round your answer to the nearest whole number.
Determine Biscaynes new break-even point for the following independent scenario: Fixed costs increase by $5,200. (Assume a product mix of 50/50.) Note: Do not round your intermediate calculations. Round your answer to the nearest whole number.
Determine Biscaynes new break-even point for the following independent scenario: Variable costs increase by 30 percent. (Assume a product mix of 50/50.) Note: Do not round your intermediate calculations. Round your answer to the nearest whole number.
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