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)

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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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(b)

Without calculations, determine the contribution margin at the break-even point.

Contribution margin at the break-even point

$enter contribution margin at the break-even point in dollars

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