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Blossom provides shuttle service between 4 hotels near a medical center and an international airport. Blossom uses two 10-passenger vans to offer 12 round
Blossom provides shuttle service between 4 hotels near a medical center and an international airport. Blossom uses two 10-passenger vans to offer 12 round trips per day. A recent month's activity in the form of a cost-volume-profit income statement is as follows. Sales (1,300 passengers) $26,000 Variable costs Fuel $4,368 Tolls and parking 2,686 Maintenance 746 7,800 Contribution margin 18,200 Fixed costs Salaries Depreciation (straight-line) Insurance Net income 12,000 1,100 900 14,000 $4,200 (a) Calculate the break-even point in (1) sales dollars and (2) number of passengers. Break-even point Break-even point $ passengers
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