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Kare Kars provides shuttle service between four hotels near a medical center and an international airport. Kare Kars uses two 10-passenger vans to offer 12
Kare Kars provides shuttle service between four hotels near a medical center and an international airport. Kare 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 $36,400 Fare revenues (1,300 fares) Variable costs Fuel Tolls and parking Maintenance $6,552 3,276 1,092 10,920 25,480 Contribution margin Fixed costs Salaries Depreciation Insurance 14,827 1,396 1,221 17,444 $8,036 Net income (a) Calculate the break-even point in (1) dollars and (2) number of fares (1) Break-even point (2) Break-even point fares
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