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Cullumber provides shuttle service between four hotels near a medical center and an international airport. Cullumber uses two 10-passenger vans to offer 12 round trips
Cullumber provides shuttle service between four hotels near a medical center and an international airport. Cullumber 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 shown below.
Sales (1,460 passengers) | $33,580 | |||
Variable costs | ||||
Fuel | $5,453 | |||
Tolls and parking | 2,011 | |||
Maintenance | 931 | 8,395 | ||
Contribution margin | 25,185 | |||
Fixed costs | ||||
Salaries | 13,000 | |||
Depreciation | 3,000 | |||
Insurance | 1,250 | 17,250 | ||
Net income | $7,935 |
(a1)
Calculate the break-even point in dollars.
Break-even point | $ |
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