Question: All but number 2 are correct please do number 2 Biscaynes Rent-A-Ride rents two models of automobiles: the standard and the deluxe. Information follows: Standard
All but number 2 are correct please do number 2 Biscaynes Rent-A-Ride rents two models of automobiles: the standard and the deluxe. Information follows:
| Standard | Deluxe | |
|---|---|---|
| Rental price per day | $ 40.00 | $ 48.00 |
| Variable cost per day | 15.50 | 20.20 |
Biscaynes total fixed cost is $21,000 per month.
Required:
Determine Biscaynes new break-even point in each of the following independent scenarios:
- Product mix is 40/60.
- Sales price increases on both models by 15 percent. (Assume a product mix of 50/50.)
- Fixed costs increase by $3,200. (Assume a product mix of 50/50.)
- Variable costs increase by 20 percent. (Assume a product mix of 50/50.)







Biscayne's Rent-A-Ride rents two models of automobiles: the standard and the deluxe. Information follows: Biscayne's total fixed cost is $21,000 per month. 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 $3,200. (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. Complete this question by entering your answers in the tabs below. 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. Complete this question by entering your answers in the tabs below. Determine Biscayne's new break-even point for the following independent scenario: Sales price increases on both models by 15 percent. (Assume a product mix of 50/50.) Note: Do not round your intermediate calculations. Round your answer to the nearest whole number. Complete this question by entering your answers in the tabs below. Determine Biscayne's new break-even point for the following independent scenario: Fixed costs increase by $3,200. (Assume a product mix of 50/50. .) Note: Do not round your intermediate calculations. Round your answer to the nearest whole number. Complete this question by entering your answers in the tabs below. Determine Biscayne's new break-even point for the following independent scenario: Variable costs increase by 20 percent. (Assume a product mix of 50/50.) Note: Do not round your intermediate calculations. Round your answer to the nearest whole number. X Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Determine Biscayne's new break-even point for the following independent scenario: Sales price increases on both models by 15 percent. (Assume a product mix of 50/50.) Note: Do not round your intermediate calculations. Round your answer to the nearest whole number. 4. Variable costs increase by 20 percent. (Assume a product mix of 50/50.) Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Determine Biscayne's new break-even point for the following independent scenario: Sales price increases on both models by 15 percent. (Assume a product mix of 50/50.) Note: Do not round your intermediate calculations. Round your answer to the nearest whole number
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
