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Calculate the contribution margin and break-even cost for ZipCar. Once for daily drivers (rents it by the day) and hourly (rents it by the hour)
Calculate the contribution margin and break-even cost for ZipCar. Once for daily drivers (rents it by the day) and hourly (rents it by the hour)
. 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
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