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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)

The parts of this question must be completed in order. This part will be available when you complete the part above.

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