70.2K

Verified Solution

Link Copied!

Biscayne's Ret-A-Ride rents two models of automobiles: the standard of automobiles: the and the deluxe Information fellows Rental price per day Variable cost per day 540.00 540.00 1440 1840 Biscayne's total Foxed cost is $13,120 per month. Required: 1. Determine the contribution margin per rental day and contribution margin ratio for each model that Biscayne's ofers. (Round your "Unit Contribution Margin" answers to 2 decimal places.) per Day per Day Unt Contribution Margitn Contribution Margin Ratio 2. Which model would Biscayne's prefer to rent? O Deluce Model O Standard Moda 3. Caiculate Biscayne's break-even point ithe proouct mix is s0 50. (Do not round intermediate calculations. Round your final answer to the nearest whole number.) Rental Days 4. Calculate the break-even point if Blscayne's product mix changes so that the standard model Is rented 75 percent of the time and the deluxe mocel ls rented for only 25 percent. (Do not round intermediate calculations. Round your final answer to the nearest whole number.) ntal Days 5. Calculato the break-even point it Bliccayne's product mix changec co that the standard model Is rentod 25 percont of the time and the deluxe mocel Ic ronted for 75 percent.(Do not round intermediate calculations. Round your final answer to the nearest whole number.) Rental Days

Answer & Explanation Solved by verified expert

See Answer