Question
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
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