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Tim-Buck-II 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 $114,750.
Question a. Calculate the sales price per composite unit.
Question b. What is the contribution margin per composite unit?
Question c. Calculate Tim-Buck-II's break-even point in both dollars and units.
Question d. Using an income statement format, prove that this is the break-even point.
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Accounts Balances Cash $3,500, Accounts payable 1,500 and Supplies 11,900. Use only the appropriate accounts to prepare income statement
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