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Calculate the break-even point in dollars

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Question - 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 month's activity in the form of a cost-volume-pro?t 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

a1) Calculate the break-even point in dollars.

a2) Calculate the break-even point in number of passengers.

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

Reference no: EM132595624

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