Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Bristol Car Service offers airport service in a mid-size city. Bristol charges $60 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 $60 per trip to or from the airport. The variable cost for a trip totals $22. for fuel, driver, and so on. The monthly fixed cost for Bristol Rainbow Tours is $6.460. Required: a. How many trips must Bristol sell every month to break even? b. Bristol's owner believes that 199 trips is a reasonable forecast of the average monthly demand. What is the margin of safety in terms of the number of airport trips? a Break-even point b. Margin of safety Pacific Parts produces a single part for sale. The part sells for $38 per unit. Fixed costs are $900,000 annually. Production and sales of 240,000 units annually results in profit before taxes of $2,700,000. Required: What is the unit variable cost? Variable cost per unit
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