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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 Deluxe $62.00
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 Deluxe $62.00 $70.00 26.50 31.20 Biscayne's total fixed cost is $26,500.00 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.) Even Point Rental Days c. Fixed costs increase by $5,400. (Assume a product mix of 50/50.) (Do not round your intermediate calculations. Round your answer to the nearest whole number.) 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.) Even Point Rental Days
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