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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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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