Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Bristol Car Service offers airport service in a mid-size city. Bristol charges $38 per trip to or from the airport. The variable cost for a
Bristol Car Service offers airport service in a mid-size city. Bristol charges $38 per trip to or from the airport. The variable cost for a trip totals $36, for fuel, driver, and so on. The monthly fixed cost for Bristol Rainbow Tours is $620.
Required:
a. How many trips must Bristol sell every month to break even?
b. Bristol's owner believes that 325 trips is a reasonable forecast of the average monthly demand. What is the margin of safety in terms of the number of airport trips?
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