Biscaynes Rent-A-Ride rents two models of automobiles: the standard and the deluxe. Information follows:

StandardDeluxeRental price per day$ 50.00$ 58.00Variable cost per day20.5025.20

Biscaynes total fixed cost is $23,500 per month.

Required:

Determine Biscaynes 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 $4,200. (Assume a product mix of 50/50.)
4. Variable costs increase by 20 percent. (Assume a product mix of 50/50.)