Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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 month's activity in the form of a cost-volume-profit income statement is shown below. $33,580 Sales (1,460 passengers) Variable costs Fuel Tolls and parking Maintenance $5,453 2,011 931 8,395 Contribution margin Fixed costs 25,185 13,000 3,000 Salaries Depreciation Insurance Net income 1,250 17,250 $7,935 Calculate the break-even point in dollars. Break-even point $ Calculate the break-even point in number of passengers. Break-even point passengers Without calculations, determine the contribution margin at the break-even point. Contribution margin at the break-even point $ Question Attempts: Unlimited or
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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