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Carla Vista provides shuttle service between 4 hotels near a medical center and an international airport. Carla Vista uses two 10- passenger vans to offer
Carla Vista provides shuttle service between 4 hotels near a medical center and an international airport. Carla Vista uses two 10- passenger vans to offer 12 round trips per day. A recent month's activity in the form of a cost-volume-profit income statement is as follows. Sales (1,490 passengers) $40,230 Variable costs Fuel $6.759 Tolls and parking 134 Maintenance 1,153 8,046 Contribution margin 32.184 Fixed costs Salaries 13,000 Depreciation (straight-line) 2,000 Insurance 1,200 16,200 Net income $15,984 (a) Calculate the break-even point in (1) sales dollars and (2) number of passengers. Break-even point Break-even point Textbook and Media passengers
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