Oriole provides shuttle service between four hotels near a medical center and an international airport. Oriole 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.Sales (1,330 passengers) $39,900Variable costs Fuel $5,809 Tolls and parking 7,164 Maintenance 992 13,965Contribution margin 25,935Fixed costs Salaries 12,500 Depreciation 1,700 Insurance 1,400 15,600Net income $10,335 (A) Calculate the break-even point in dollars.Break-even point $Type your answer here (B) Calculate the break-even point in number of passengers.Break-even point Type your answer herepassengers(C) Without calculations, determine the contribution margin at the break-even point.Contribution margin at the break-even point $Type your answer here

Break even point sale is a point of sale where the business is in a situation of no profit no loss.

Answered: Calculate the break-even point in…

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

Sales (1,330 passengers)		$39,900
Variable costs
Fuel	$5,809
Tolls and parking	7,164
Maintenance	992	13,965
Contribution margin		25,935
Fixed costs
Salaries	12,500
Depreciation	1,700
Insurance	1,400	15,600
Net income		$10,335

(A) Calculate the break-even point in dollars.

Break-even point

$Type your answer here

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

Break-even point

Type your answer here

passengers

Contribution margin at the break-even point

$Type your answer here

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