Q6: Spencer Kars provides shuttle service between four hotels near a medical center and an international airport. Spencer Kars 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.

Fare revenues ( 1,330 fares)				$ 39,900
Variable costs
Fuel		$ 5,809
Tolls and parking		3,573
Maintenance		992		10,374
Contribution margin				29,526
Fixed costs
Salaries		12,500
Depreciation		1,100
Insurance		4,530		18,130
Net income				$ 11,396

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.