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Biscayne's Rent-A-Ride rents two models of automobiles: the standard and the deluxe. Information follows: Rental price per day Variable cost per day Standard $
Biscayne's Rent-A-Ride rents two models of automobiles: the standard and the deluxe. Information follows: Rental price per day Variable cost per day Standard $ 56.00 23.50 Deluxe $ 64.00 28.20 Biscayne's total fixed cost is $25,000 per month. Required: Determine Biscayne's new break-even point in each of the following independent scenarios: 1. Product mix is 40/60. 2. Sales price increases on both models by 10 percent. (Assume a product mix of 50/50.) 3. Fixed costs increase by $4,800. (Assume a product mix of 50/50.) 4. Variable costs increase by 20 percent. (Assume a product mix of 50/50.) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Determine Biscayne's new break-even point for the following independent scenario: Variable costs increase 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. Break-Even Point Rental Days
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