ABC Service company provides shuttle service between four hotels near a Hospital and an international airport. ABC 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/units) OMR 36,000 Variable costs Fuel OMR 5,040 Tolls and parking 3,100 Maintenance 860 9,000 Contribution margin 27,000 Fixed costs 12,700 Salaries 1,300 Depreciation 1,000 Insurance 15,000 OMR 12,000 Net income What is the break-even point in OMR/ dollars?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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ABC Service company provides shuttle service between four hotels near a Hospital and an intermational airport. ABC 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/units)
OMR 36,000
Variable costs
Fuel
OMR 5,040
Tolls and parking
3,100
Maintenance
860
9,000
Contribution margin
27,000
Fixed costs
Salaries
12,700
1,300
Depreciation
1,000
Insurance
15,000
OMR 12,000
Net income
What is the break-even point in OMR/ dollars?
Transcribed Image Text:ABC Service company provides shuttle service between four hotels near a Hospital and an intermational airport. ABC 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/units) OMR 36,000 Variable costs Fuel OMR 5,040 Tolls and parking 3,100 Maintenance 860 9,000 Contribution margin 27,000 Fixed costs Salaries 12,700 1,300 Depreciation 1,000 Insurance 15,000 OMR 12,000 Net income What is the break-even point in OMR/ dollars?
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