Question
Ivanhoe provides shuttle service between four hotels near a medical center and an international airport. Ivanhoe uses two 10 passengers vans to offer 12 round
Ivanhoe provides shuttle service between four hotels near a medical center and an international airport. Ivanhoe uses two 10 passengers 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 (1,300 passengers). $26,000 Variable Costs Fuel $6,334 Tolls and Parking $1,685 Maintenance $1,081. $9,100 Contribution Margin. $16,900
Fixed Costs Salaries $12,900 Depreciation $1,250 Insurance $930 Net Income. $1,820
Calculate the break-even point in dollars.
Calculate the break-even point in numbers of Passengers.
Without calculations, determine the contribution margin at the break-even point.
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