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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Question 12
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 | |||
| |
1,260 | |||
| Insurance | 970 | 17,430 | ||
| Net income | $2,170 |
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