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Biscaynes Rent-A-Ride rents two models of automobiles: the standard and the deluxe. Information follows: Standard Deluxe Rental price per day $ 62.00 $ 70.00 Variable
Biscaynes Rent-A-Ride rents two models of automobiles: the standard and the deluxe. Information follows: Standard Deluxe Rental price per day $ 62.00 $ 70.00 Variable cost per day 26.50 31.20 Biscaynes total fixed cost is $26,500 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 10 percent. (Assume a product mix of 50/50.) Fixed costs increase by $5,400. (Assume a product mix of 50/50.) Variable costs increase by 20 percent. (Assume a product mix of 50/50.)
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