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Novak Kars provides shuttle service between four hotels near a medical center and an international airport. Novak Kars 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 (1,400 fares)       $28,000 Variable costs             Fuel   $5,040         Tolls and parking   2,520         Maintenance   840   8,400 Contribution margin       19,600 Fixed costs             Salaries   15,200         Depreciation   1,260         Insurance   970   17,430 Net income       $2,170

Novak Kars provides shuttle service between four hotels near a medical center and an international airport. Novak Kars 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 (1,400 fares)       $28,000 Variable costs             Fuel   $5,040         Tolls and parking   2,520         Maintenance   840   8,400 Contribution margin       19,600 Fixed costs             Salaries   15,200         Depreciation   1,260         Insurance   970   17,430 Net income       $2,170

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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Novak Kars provides shuttle service between four hotels near a medical center and an international airport. Novak Kars 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 (1,400 fares)       $28,000
Variable costs        
    Fuel   $5,040    
    Tolls and parking   2,520    
    Maintenance   840   8,400
Contribution margin       19,600
Fixed costs        
    Salaries   15,200    
    Depreciation   1,260    
    Insurance   970   17,430
Net income       $2,170
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