# Biscayne's Rent-A-Ride rents two models of automobiles: the standard and the deluxe. Information follows:StandardDeluxeRental price per dayVariable cost per day\$70.00\$90.0019.6027.00Biscayne's total fixed cost is \$33,294 per monthRequired: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 percent5. 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.

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Step 1

As there are many requirements in this question, we are answering the last three requirements alone.

Step 2

Break-Even Point: The break-even point refers to the point of sales at which the firm neither earns a profit nor suffers a loss. It is also known as the point of sales or sales value at which the firm recovers the entire cost of fixed and variable nature.

Step 3

3)

The break-even if the product mix is 50/50 ...

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