Tim-Buck-Il rents jet skis at a beach resort. There are three models available to rent: Junior, Adult, and Expert. The rental price and variable costs for these three models are as follows:
The current product mix is 5:4:1. The three models share total fixed costs of $1 14,750
A. Calculate the sales price per composite unit.
B. What is the contribution margin per composite unit?
C. Calculate Tim-Buck-II’s break-even point in both dollars and units.
D. Using an income statement format, prove that this is the break-even point.
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