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Sandhill provides shuttle service between four hotels near a medical center and an international airport. Sandhill uses two 10-passenger vans to offer 12 round trips
Sandhill provides shuttle service between four hotels near a medical center and an international airport. Sandhill 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 (1,380 passengers) $38,640 Variable costs $5,842 4,752 Fuel Tolls and parking Maintenance Contribution margin 998 11,592 27,048 Fixed costs Salaries Depreciation 12,500 1,500 1,092 Insurance 15,092 $11,956 Net income Calculate the break-even point in dollars. Break-even point Calculate the break-even point in number of passengers. Break-even point passengers Without calculations, determine the contribution margin at the break-even point. Contribution margin at the break-even point
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