Please answer last 2 subparts only Biscayne's Rent-A-Ride rents two models of automobiles: the standard and the deluxe. Information follows:Standard$ 50.0020.50Rental price per dayVariable cost per dayBiscayne's total fixed cost is $23,500 per month.Deluxe$ 58.0025.20Required: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 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.)Complete this question by entering your answers in the tabs below.

BREAKEVEN POINTBreak Even means the volume of production or sales where there is no profit or…

00 per month. wen point in each of the following independent scenarios: odels by 10 percent. (Assume a product mix of 50/50.) Assume a product mix of 50/50.) cent. (Assume a product mix of 50/50.) ring your answers in the tabs below.

00 per month. wen point in each of the following independent scenarios: odels by 10 percent. (Assume a product mix of 50/50.) Assume a product mix of 50/50.) cent. (Assume a product mix of 50/50.) ring your answers in the tabs below.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.

Question

Please answer last 2 subparts only

Biscayne's Rent-A-Ride rents two models of automobiles: the standard and the deluxe. Information follows:
Standard
$ 50.00
20.50
Rental price per day
Variable cost per day
Biscayne's total fixed cost is $23,500 per month.
Deluxe
$ 58.00
25.20
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 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.)
Complete this question by entering your answers in the tabs below.

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Step 1: Introducing Breakeven Point of Sales

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