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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 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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