Johnson Company and Smith Company are competing firms that offer limousine service from the Charlesbourg airport while Johnson pays most of its employees on a per-ride basis, smith prefers to pay its employees fixed Salaries. Information about the selling prices per ride and cost structures of the two firms is given below.

Cost Category	Johnson Company	Smith Company
Selling price per ride	$30	$30
Variable cost per ride	24	15
Contribution margin per ride	6	15
Fixed costs	$300,000	$150,000

Required: (d) Explain which firms cost structure is riskier. (a) Calculate the Breakeven point in the number of rides for both firms. (b) Draw two graphs plotting profit as a function of the number of rides for the two firms. (c) Explain which firms cost structure is more profitable.