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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 $50.00 20.50
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 $50.00 20.50 Deluxe $58.00 25.20 Biscayne's total fixed cost is $23,500.00 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.) Break-Even Point Rental Days b. Sales price increases on both models by 10 percent. (Assume a product mix of 50/50.) (Do not round your intermediatecalculations. Round your answer to the nearest whole number.) Break-Even Point Rental Days c. Fixed costs increase by $4,200. (Assume a product mix of 50/50.) (Do not round your intermediate calculations. Round your answer to the nearest whole number.) Break-Even Point Rental Days d. Variable costs increase by 20 percent. (Assume a product mix of 50/50.) (Do not round your intermediate calculations. Round your answer to the nearest whole number.) Break-Even Point Rental Days
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