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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 month's activity in the form of a cost-volume-profit income statement is shown below.

Sales (1,500 passengers)$36,000

Variable costs

Fuel$5,040

Tolls and parking 3,100

Maintenance 860 9,000

Contribution margin 27,000

Fixed costs

Salaries15,700

Depreciation1,300

Insurance1,000 18,000

Net income$9,000

break even point is 24000

break-even point in number of passengers is 1000

what is the contribution margin at the break-even point?

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