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Wildhorse provides shuttle service between four hotels near a medical center and an international airport. Wildhorse uses two 10-passenger vans to offer 12 round trips
Wildhorse provides shuttle service between four hotels near a medical center and an international airport. Wildhorse uses two 10-passenger vans to offer 12 round trips per day. A recent months activity in the form of a cost-volume-profit income statement is shown below.
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 | 2,000 | |||
Insurance | 1,000 | 16,500 | ||
Net income | $8,250 |
Calculate the break-even point in dollars.
Break-even point | $ |
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