Question
Sandhill provides shuttle service between 4 hotels near a medical center and an international airport. Sandhill uses two 10-passenger vans to offer 12 round trips
Sandhill provides shuttle service between 4 hotels near a medical center and an international airport. Sandhill 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 (1,330 passengers) | $37,240 | |||
Variable costs | ||||
Fuel | $5,005 | |||
Tolls and parking | 1,588 | |||
Maintenance | 855 | 7,448 | ||
Contribution margin | 29,792 | |||
Fixed costs | ||||
Salaries | 13,500 | |||
Depreciation (straight-line) | 2,000 | |||
Insurance | 1,300 | 16,800 | ||
Net income | $12,992 |
(a)
Calculate the break-even point in (1) sales dollars and (2) number of passengers.
Break-even point | $enter break-even point in dollars | ||
---|---|---|---|
Break-even point | enter break-even point in number of passengers | passengers |
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(b)
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