Question
Pharoah provides shuttle service between 4 hotels near a medical center and an international airport. Pharoah uses two 10-passenger vans to offer 12 round trips
Pharoah provides shuttle service between 4 hotels near a medical center and an international airport. Pharoah 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 as follows.
Sales (1,400 passengers) | $36,400 | |||
---|---|---|---|---|
Variable costs | ||||
Fuel | $4,077 | |||
Tolls and parking | 2,507 | |||
Maintenance | 696 | 7,280 | ||
Contribution margin | 29,120 | |||
Fixed costs | ||||
Salaries | 11,000 | |||
Depreciation (straight-line) | 1,300 | |||
Insurance | 4,860 | 17,160 | ||
Net income | $11,960 |
(a)
Calculate the break-even point in (1) sales dollars and (2) number of passengers.
Break-even point | $enter the break-even point in dollars | ||
---|---|---|---|
Break-even point | enter the break-even point in number of passengers | passengers |
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(b)
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