Find the break-even point in dollars and in fares

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Reference no: EM1346834

Airport Connection provides shuttle service between four hotels near a medical center and an international airport. Airport Connection 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 (1,440 fares) $36,000

Variable costs
Fuel $5,040
Tolls and Parking 3,100
Maintenance 500
Total 8,640

Fixed costs
Salaries 13,000
Depreciation 1,300
Insurance 1,128
Total 15,428

Net income $11,932

Find the break-even point in dollars and in fares.

Reference no: EM1346834

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