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 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?
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