Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Spencer Kars provides shuttle service between four hotels near a medical center and an international airport. Spencer Kars uses two 10-passenger vans to offer 12

Spencer Kars provides shuttle service between four 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 months activity in the form of a cost-volume-profit income statement is shown below. Fare revenues ( 1,340 fares) $ 40,200 Variable costs Fuel $ 5,178 Tolls and parking 3,184 Maintenance 884 9,246 Contribution margin 30,954 Fixed costs Salaries 12,900 Depreciation 1,300 Insurance 1,739 15,939 Net income $ 15,015 Calculate the break-even point in dollars. Break-even point $ Calculate the break-even point in number of fares. (Round answer to 0 decimal places, e.g. 5,275.) Break-even point fares

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

What attracts you about this role?

Answered: 1 week ago

Question

How many states in India?

Answered: 1 week ago

Question

HOW IS MARKETING CHANGING WITH ARTIFITIAL INTELIGENCE

Answered: 1 week ago