Question
Sheridan provides shuttle service between four hotels near a medical center and an international airport. Sheridan uses two 10-passenger vans to offer 12 round trips
Sheridan provides shuttle service between four hotels near a medical center and an international airport. Sheridan 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. Sales (1,470 passengers) $41,160 Variable costs Fuel $5,762 Tolls and parking 3,544 Maintenance 984 10,290 Contribution margin 30,870 Fixed costs Salaries 13,100 Depreciation 1,400 Insurance 1,250 15,750 Net income $15,120 (a1) Calculate the break-even point in dollars. Break-even point $ eTextbook and Media (a2) Calculate the break-even point in number of passengers. Break-even point passengers eTextbook and Media (b) Without calculations, determine the contribution margin at the break-even point. Contribution margin at the break-even point $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started