Question
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
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 (1,400 passengers) $33,600 Variable costs Fuel $5,457 Tolls and parking 2,012 Maintenance 931 8,400 Contribution margin 25,200 Fixed costs Salaries 13,500 Depreciation (straight-line) 1,700 Insurance 1,000 16.200 Net income $9,000 Calculate the break-even point in (1) ales dollars and (2) number of passengers. Break-even point $ Break-even point passengers
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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