Calculate the break-even point in 1 dollars and 2 number of

Reference no: EM13588275

Kare Kars provides shuttle service between four hotels near a medical center and an international airport. Kare 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.

Fare revenues (1,400 fares)		$30,800
Variable costs
Fuel	$5,544
Tolls and parking	2,772
Maintenance	924	9,240
Contribution margin		21,560
Fixed costs
Salaries	11,127
Depreciation	1,047
Insurance	916	13,090
Net income		$8,470

(a) Calculate the break-even point in (1) dollars and (2) number of fares.

(1)		Break-even point		$
(2)	Break-even point		$		fares

(b) Without calculations, determine the contribution margin at the break-even point.

Contribution margin at the break-even point

Reference no: EM13588275

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Calculate the break-even point in 1 dollars and 2 number of

Reference no: EM13588275

Reference no: EM13588275

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