Cullumber provides shuttle service between 4 hotels near a medical center and an international airport. Cullumber 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 asfollows.Sales (1,370 passengers)Variable costsFuelTolls and parkingMaintenanceContribution marginFixed costsSalariesDepreciation (straight-line)InsuranceNet incomeBreak-even pointBreak-even point$3,836$2,35965512,3001,1001,000$34,2506,850Calculate the break-even point in (1) sales dollars and (2) number of passengers.27,40014,400$13,000passengers

Break-even point :— It is the point of production where total cost is equal to total revenue. At…

Answered: Cullumber provides shuttle service…

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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