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Wildhorse provides shuttle service between 4 hotels near a medical center and an international airport. Wildhorse uses two 10- passenger vans to offer 12 round
Wildhorse provides shuttle service between 4 hotels near a medical center and an international airport. Wildhorse 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 as follows. Sales (1,500 passengers) $33,000 Variable costs Fuel $4,250 Tolls and parking 3,274 Maintenance 726 8,250 Contribution margin 24,750 Fixed costs Salaries 13,500 Depreciation (straight-line) 2,000 Insurance 1,000 16,500 Net income $8,250
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