Biscayne's Rent-A-Ride rents two models of automobiles: the standard and the deluxe. Information follows: Standard $ 58.00 24.50 Rental price per day. Variable cost per day Biscayne's total fixed cost is $25,500 per month. Deluxe $ 66.00 29.20 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 15 percent. (Assume a product mix of 50/50.) 3. Fixed costs increase by $5,000 (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. Required 1 Required 2 Required 3 Required 41 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, Break-Even Point Rental Days

Biscayne's Rent-A-Ride rents two models of automobiles: the standard and the deluxe. Information follows: Standard $ 58.00 24.50 Rental price per day. Variable cost per day Biscayne's total fixed cost is $25,500 per month. Deluxe $ 66.00 29.20 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 15 percent. (Assume a product mix of 50/50.) 3. Fixed costs increase by $5,000 (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. Required 1 Required 2 Required 3 Required 41 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, Break-Even Point Rental Days

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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Assume that Ocean King Products sells three varieties of canned seafood with the following prices and costs. Selling Priceper Case Variable Costper Case Fixed Costper Month Variety 1 $ 15 $ 12 – Variety 2 16 14 – Variety 3 21 14 – Entire firm – – $ 48,400 The sales mix (in cases) is 60 percent Variety 1, 25 percent Variety 2, and 15 percent Variety 3. Required: a. At what sales revenue per month does the company break even? b. Suppose the company is subject to a 35 percent tax rate on income. At what sales revenue per month will the company earn $50,245 after taxes assuming the same sales mix?
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Outback Outfitters sells a small camp stove for $150 per unit. Variable expenses are $105 per unit, and fixed expenses total $184,500 per month. Required: 1. What is the break-even point in unit sales and in dollar sales? 2. If the variable expenses per stove increase as a percentage of the selling price, will it result in a higher or a lower break-even point? (Assume the fixed expenses remain unchanged.) 3. At present, the company is selling 10,000 stoves per month. The sales manager is convinced a 10% reduction in the selling price would result in a 25% increase in unit sales. Prepare two contribution format income statements, one under present operating conditions, and one as operations would appear after the proposed changes. 4. Refer to the data in Required 3. How many stoves would have to be sold at the new selling price to attain a target profit of $79,000 per month? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Break-even…
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Trailblazer Company sells a product for $270 per unit. The variable cost is $150 per unit, and fixed costs are $576,000. Determine (a) the break-even point in sales units and (b) the break-even point in sales units if the company desires a target profit of $224,640. a. Break-even point in sales units units b. Break-even point in sales units if the company desires a target profit of $224,640 units
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