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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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