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Sandhill provides shuttle service between four hotels near a medical center and an international airport. Sandhill uses two 10- passenger vans to offer 12
Sandhill provides shuttle service between four hotels near a medical center and an international airport. Sandhill uses two 10- passenger vans to offer 12 round trips per day. A recent month's activity in the form of a cost-volume-profit income statement is shown below. Sales (1,380 passengers) $38,640 Variable costs Fuel $5,842 Tolls and parking 4,752 Maintenance 998 11,592 Contribution margin 27,048 Fixed costs Salaries 12,500 Depreciation 1,500 Insurance 1.092 15,092 Net income $11,956
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