Answer can be found in the breakeven analysis. There is forecast data and some actual data from Sept to do this (Ex 3, 5, 8a, 8b). To do breakeven, calculated the contribution margin by type of subscriber, then use the actual user mix data from the Sept financials to calculate breakeven revenue, which will give you breakeven time, and breakeven capacity. There is no one answer since it depends on whether you treat a cost item as variable or semi-variable. Tips: - DO NOT calculate breakeven at the financial statement (company) level. Why? - If you calculate the breakeven on a per car basis your answer will not be accurate because a car can have different ratios of hourly and daily subscribers. Use the data on local market size, market penetration expected, etc. to estimate expected revenues. Make sure you account for the expected utilization rate of a car to figure out the car revenue generating capacity. This will tell you how big of fleet Robin needs to breakeven. . Exhibit 3 Original Financial Plan for Boston, December 1999 Note: Zipcar offered a daily rate of $44 for 24 hours, which included 125 free miles. In the table below, these uses, as well as the hours and miles associated with them, are bmken out and described as "dailv" uses. The other uses - and their miles, Source: Company. Memberdays = the total number of members on any given day for each of the 30 days of the month, e.g., a member for a full month generates 30 member days. Similarly, a car day is one day of one car being in service. b While Zipcar members paid a $75 annual membership fee upon joining, only 1/12 of that fee was "booked" to revenue each month. c Night and weekend =6 p.m. to 8 a.m. and all day Saturday and Sunday. Exhibit 8a Zipcar Membership Data, 2000