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 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 months activity in the form of a cost-volume-profit income statement is as follows.
Sales (1,330 passengers) | $31,920 | |||
Variable costs | ||||
Fuel | $4,588 | |||
Tolls and parking | 2,609 | |||
Maintenance | 783 | 7,980 | ||
Contribution margin | 23,940 | |||
Fixed costs | ||||
Salaries | 13,100 | |||
Depreciation (straight-line) | 1,100 | |||
Insurance | 704 | 14,904 | ||
Net income | $9,036 |
(a)
Calculate the break-even point in (1) sales dollars and (2) number of passengers.
Break-even point | $enter break-even point in dollars | ||
---|---|---|---|
Break-even point | enter break-even point in number of passengers | passengers |
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