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Exercise 3-36 (Algo) CVP and Margin of Safety (LO 3-1, 2) Bristol Car Service offers airport service in a mid-size city. Bristol charges $38 per
Exercise 3-36 (Algo) CVP and Margin of Safety (LO 3-1, 2) Bristol Car Service offers airport service in a mid-size city. Bristol charges $38 per trip to or from the airport. The variable cost for a trip totals $36, for fuel, driver, and so on. The monthly fixed cost for Bristol Rainbow Tours is $620. Required: a. How many trips must Bristol sell every month to break even? b. Bristol's owner believes that 325 trips is a reasonable forecast of the average monthly demand. What is the margin of safety in terms of the number of airport trips? a. Break-even point b. Margin of safety trips trips
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