Spencer Kars provides shuttle service between $4$ 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 month's activity in the form of a cost$-$

volume$-$profit income statement is as follows.

Fixed costs

$($a$)$

Your answer is correct.

Calculate the break$-$even point in $(1)$ sales dollars and $(2)$ number of passengers.

Break$-$even point $

Break$-$even point

passengers

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$($b$)$

Your answer is incorrect.

Without calculations, determine the contribution margin at the break$-$even point.

Contribution margin at the break$-$even point