Leemo and Ride-A-Way are new ride-hailing service alternatives to taxi cabs like Uber and Lyft. While Ride-A-Way pays its drivers on a per-ride basis, Leemo prefers to pay its drivers fixed salaries. The cost structures and pricing of the two firms are given in the following table: Cost Grouping Ride-A-Way Leemo Selling price per ride $30 $30 Variable cost per ride $24 $15 Contribution margin per ride $6 $15 Fixed costs per year $300,000 $1,500,000