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Crane provides shuttle service between 4 hotels near a medical center and an international airport. Crane uses two 10-passenger vans to offer 12 round trips
Crane provides shuttle service between 4 hotels near a medical center and an international airport. Crane 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 (1,310 passengers) $34,060 Variable costs Fuel $4,387 Tolls and parking 1,676 Maintenance 749 6,812 Contribution margin 27,248 Fixed costs Salaries 12,000 Depreciation (straight-line) 2,200 Insurance 1,400 15,600 Net income $11,648 * Your answer is incorrect. Without calculations, determine the contribution margin at the break-even point. Contribution margin at the break-even point $ 19500 (a). (b)
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