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3-35. CVP and Margin of Safety Bristol Car Service offers airport service in a mid-size city. Bristol charges $50 per trip to or from the airport. The variable cost for a trip totals $12, for fuel, driver, and so on. The monthly fixed cost for Bristol Rainbow Tours is $2,736. Required How many trips must Bristol sell every month to break even? Bristol's owner believes that 90 trips is a reasonable forecast of the average monthly demand.What is the margin of safety in terms of the number of airport trips? a. b.

3-35. CVP and Margin of Safety Bristol Car Service offers airport service in a mid-size city. Bristol charges $50 per trip to or from the airport. The variable cost for a trip totals $12, for fuel, driver, and so on. The monthly fixed cost for Bristol Rainbow Tours is $2,736. Required How many trips must Bristol sell every month to break even? Bristol's owner believes that 90 trips is a reasonable forecast of the average monthly demand.What is the margin of safety in terms of the number of airport trips? a. b.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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solve questions a and b

2)3-35, CVP and Margin of Safety Bristol Car Service offers airport service in a mid-size city. Bristol charges $50 per trip to or from the airport. The variable cost for a trip totals S12, for fuel, driver, and so on. The monthly fixed cost for Bristol Rainbow Tours is S2,736. Required How many trips must Bristol sell every month to break even? b. Bristol's owner believes that 90 trips is a reasonable forecast of the average monthly demand.What is the margin of safety in terms of the number of airport trips!
Transcribed Image Text:2)3-35, CVP and Margin of Safety Bristol Car Service offers airport service in a mid-size city. Bristol charges $50 per trip to or from the airport. The variable cost for a trip totals S12, for fuel, driver, and so on. The monthly fixed cost for Bristol Rainbow Tours is S2,736. Required How many trips must Bristol sell every month to break even? b. Bristol's owner believes that 90 trips is a reasonable forecast of the average monthly demand.What is the margin of safety in terms of the number of airport trips!
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