Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Blossom provides shuttle service between four hotels near a medical center and an international airport. Blossom uses two 10-passenger vans to offer 12 round trips
Blossom provides shuttle service between four hotels near a medical center and an international airport. Blossom uses two 10-passenger vans to offer 12 round trips per day. A recent months activity in the form of a cost-volume-profit income statement is shown below.
Sales (1,450 passengers) | $33,350 | |||
Variable costs | ||||
Fuel | $4,109 | |||
Tolls and parking | 1,860 | |||
Maintenance | 701 | 6,670 | ||
Contribution margin | 26,680 | |||
Fixed costs | ||||
Salaries | 13,700 | |||
Depreciation | 2,900 | |||
Insurance | 1,800 | 18,400 | ||
Net income | $8,280 |
(a1)
Calculate the break-even point in dollars.
Calculate the break-even point in dollars.
Break-even point | $ |
Calculate the break-even point in number of passengers.
Break-even point | |
Without calculations, determine the contribution margin at the break-even point.
Contribution margin at the break-even point $ |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started