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Biscayne's Rent-A-Ride rents two models of automobiles: the standard and the deluxe. Information follows: Standard Deluxe Rental price per day $ 36.00 $ 44.00 Variable
Biscayne's Rent-A-Ride rents two models of automobiles: the standard and the deluxe. Information follows:
Standard
Deluxe
Rental price per day
$ 36.00
$ 44.00
Variable cost per day
13.50
18.20
Biscayne's total fixed cost is $20,000 per month.
Required:
Determine Biscayne's 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 $2,800. (Assume a product mix of 50/50.)
- Variable costs increase by 30 percent. (Assume a product mix of 50/50.)
Biscayne's Rent-A-Ride rents two models of automobiles: the standard and the deluxe. Information follows: Biscayne's total fixed cost is $20,000 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 20 percent. (Assume a product mix of 50/50.) 3. Fixed costs increase by $2,800. (Assume a product mix of 50/50 ) 4. Variable costs increase by 30 percent, (Assume a product mix of 50/50 ) Complete this question by entering your answers in the tabs below. Determine Biscayne's 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
Biscayne's Rent-A-Ride rents two models of automobiles: the standard and the deluxe. Information follows:
| Standard | Deluxe |
Rental price per day | $ 36.00 | $ 44.00 |
Variable cost per day | 13.50 | 18.20 |
Biscayne's total fixed cost is $20,000 per month.
Required:
Determine Biscayne's 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 $2,800. (Assume a product mix of 50/50.)
- Variable costs increase by 30 percent. (Assume a product mix of 50/50.)
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