Biscayne's Rent-A-Ride rents two models of automobiles: the standard and the deluxe. Information follows:De luxe$ 46.0018.40Rental price per dayVariable cost per dayBiscayne's total fixed cost is $13,120 per month.Required:1. Determine the contribution margin per rental day and contribution margin ratio for each model that Biscayne's offers.2. Which model would Biscayne's prefer to rent?3. Calculate Biscayne's break-even point if the product mix is 50/50.4. Calculate the break-even point if Biscayne's product mix changes so that the standard model is rented 75 percent of the time andthe deluxe model is rented for only 25 percent.Standard$ 40.0014.405. Calculate the break-even point if Biscayne's product mix changes so that the standard model is rented 25 percent of the time andthe deluxe model is rented for 75 percent.Complete this question by entering your answers in the tabs below.Required 1 Required 2Unit Contribution MarginContribution Margin RatioRequired 3 Required 4 Required 5Determine the contribution margin per rental day and contribution margin ratio for each model that Biscayne's offers.Note: Round your "Unit Contribution Margin" answers to 2 decimal places.Standardper Day%< Required 1Deluxeper Day%Required 2 >

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Biscayne's Rent-A-Ride rents two models of automobiles: the standard and the deluxe. Information follows: Standard $ 40.00 14.40 De luxe $46.00 18.40 Rental price per day Variable cost per day 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. 2. Which model would Biscayne's prefer to rent? 3. Calculate Biscayne's break-even point if the product mix is 50/50. 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. 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Unit Contribution Margin Contribution Margin Ratio Determine the contribution margin per rental day and contribution margin ratio for each model that Biscayne's offers. Note: Round your "Unit Contribution Margin" answers to 2 decimal places. Standard per Day % Required 5 Required 1 Deluxe per Day % Required 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 12EB: Able Transport operates a tour bus that they lease with terms that involve a fixed fee each month...