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Oriole provides shuttle service between four hotels near a medical center and an international airport. Oriole uses two 10-passenger vans to offer 12 round trips

Oriole provides shuttle service between four hotels near a medical center and an international airport. Oriole uses two 10-passenger 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 (1,330 passengers) $39,900
Variable costs
Fuel $5,809
Tolls and parking 7,164
Maintenance 992 13,965
Contribution margin 25,935
Fixed costs
Salaries 12,500
Depreciation 1,700
Insurance 1,400 15,600
Net income $10,335

(a) Calculate the break-even point in dollars.

(b) Calculate the break-even point in number of fares.

(c) Without calculations, determine the contribution margin at the break-even point.

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