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Biscayne’s Rent-A-Ride rents two models of automobiles: the standard and the deluxe. Information follows: Standard Deluxe...

Biscayne’s Rent-A-Ride rents two models of automobiles: the standard and the deluxe. Information follows:

Standard Deluxe
Rental price per day $ 40.00 $ 46.00
Variable cost per day 14.40 18.40


Biscayne’s total fixed 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 offers. (Round your "Unit Contribution Margin" answers to 2 decimal places.)



2. Which model would Biscayne’s prefer to rent?

Deluxe Model
Standard Model



3. Calculate Biscayne’s break-even point if the product mix is 50/50. (Do not round intermediate calculations. Round your final answer to the nearest whole number.)



4. Calculate the break-even point if Biscayne’s product mix changes so that the standard model is rented 75 percent of the time and the deluxe model is rented for only 25 percent. (Do not round intermediate calculations. Round your final answer to the nearest whole number.)



5. Calculate the break-even point if Biscayne’s product mix changes so that the standard model is rented 25 percent of the time and the deluxe model is rented for 75 percent. (Do not round intermediate calculations. Round your final answer to the nearest whole number.)

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