Carla Vista provides shuttle service between 4 hotels near a medical center and an international airport. Carla Vista 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 as follows. Sales (1,490 passengers) $40,230 Variable costs Fuel $6,759 Tolls and parking 134 Maintenance 1,153 8,046 Contribution margin 32.184 Fixed costs Salaries 13,000 Depreciation (straight-line) 2,000 Insurance 1.200 16,200 Net income $15,984
Carla Vista provides shuttle service between 4 hotels near a medical center and an international airport. Carla Vista 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 as follows. Sales (1,490 passengers) $40,230 Variable costs Fuel $6,759 Tolls and parking 134 Maintenance 1,153 8,046 Contribution margin 32.184 Fixed costs Salaries 13,000 Depreciation (straight-line) 2,000 Insurance 1.200 16,200 Net income $15,984
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:Carla Vista provides shuttle service between 4 hotels near a medical center and an international airport. Carla Vista 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 as
follows.
Sales (1,490 passengers)
$40,230
Variable costs
Fuel
$6,759
Tolls and parking
134
Maintenance
1,153
8,046
Contribution margin
32.184
Fixed costs
Salaries
13,000
Depreciation (straight-line)
2,000
Insurance
1,200
16,200
Net income
$15,984

Transcribed Image Text:(a)
Calculate the break-even point in (1) sales dollars and (2) number of passengers.
Break-even point
Break-even point
passengers
Texthookand Media
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