Question

biscayne's rent-a-car rents two models of automobiles:

Biscayne's Rent-A-Ride rent two models of automobiles the standard and the dels information follows: undan 140.00 $46.00 Randy wracolper day Biscayne's total fed 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 Margie Standard Unit Contribution Margins 25.00 per Days 27.0 per Day Contribution Margint 2. Which model would Biscayne's prefer to on? D 3. Calculate scayne's b e en put the product is 50/50 Do not round intermed Break Even Point Rent Day n de d to content rounded Ic standard model is reeds perce ebreaken care produto che

Answer 1

as per HomeworkLib policy .. please find below answer of first 4 question for rest of question please raise new request..

ans 1
		Standard		Deluxe
i	Rent price per day	40		46
ii	Variable cost per day	14.4		18.4
iii=i-ii	Unit contribution margin	25.6		27.6
iv=iii/i	Contribution margin ratio	64.00%		60.00%
ans 2	Standard has higher contribution margin therefore ans = Contribution margin
ans 3	Break even point
		Standard		Deluxe	Total
i	sales	40		46
ii	Unit contribution margin	25.6		27.6
iii	Weight	0.5		0.5	1
iv=i*iii	sales mix =	20		23	43
v=ii*iii	Contribution margin mix	12.8		13.8	26.6
vi=v/ii	Contribution margin mix %				61.86%
a	Fixed cost =	13,120
b	Contribution margin mix %	61.86%
c=a/b	Break even point =	21,209
ans 4	Break even point
		Standard		Deluxe	Total
i	sales	40		46
ii	Unit contribution margin	25.6		27.6
iii	Weight	0.75		0.25	1
iv=i*iii	sales mix =	30		11.5	41.5
v=ii*iii	Contribution margin mix	19.2		6.9	26.1
vi=v/ii	Contribution margin mix %				62.89%
a	Fixed cost =	13,120
b	Contribution margin mix %	62.89%
c=a/b	Break even point =	20,861