Question
Flounder Kars provides shuttle service between four hotels near a medical center and an international airport. Flounder Kars uses two 10-passenger vans to offer 12
Flounder Kars provides shuttle service between four hotels near a medical center and an international airport. Flounder Kars 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.
Fare revenues (1,340fares)
$26,800Variable costs
Fuel
$4,824
Tolls and parking
2,412
Maintenance
804
8,040Contribution margin
18,760Fixed costs
Salaries
12,640
Depreciation
1,050
Insurance
800
14,490Net income
$4,270
(a1)
Calculate the break-even point in dollars.
Break-even point
$
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