E$6-18($Algo$)$ Analyzing Multiproduct CVP $[$LO $6-6]$

Biscayne's Rent$-$A$-$Ride rents two models of automobiles: the standard and the deluxe. Information follows:

Biscayne's total fixed cost is $$33,294$ per month.

Required:

Determine the contribution margin per rental day and contribution margin ratio for each model that Biscayne's offers.

Which model would Biscayne's prefer to rent?

Calculate Biscayne's break$-$even point if the product mix is $\frac{50}{50}.$

Calculate the break$-$even point if Biscayne's product mix changes so that the standard model is rented $75$ percent of the

time and the deluxe model is rented for only $25$ percent.

Calculate the break$-$even point if Biscayne's product mix changes so that the standard model is rented $25$ percent of the

time and the deluxe model is rented for $75$ percent.

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Required $2$

Determine the contribution margin per rental day and contribution margin ratio for each model that Biscayne's offers.