QUESTION 3 E22.11 E22.11 (LO 3, 4) near a medical çenter and an international airport. Spencer 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. Compute break-even point. Sales (1,500 passengers) Spencer Kars provides shuttle service between four hotels $36,000 Variable costs Fuel $ 5,040 Tolls and parking 3,100 Maintenance 860 9,000 Contribution margin 27,000 Fixed costs Salaries 15,700 Depreciation 1,300 Insurance 1,000 18,000 Net income $ 9,000 Instructions a. Calculate the break-even point in (1) dollars and (2) number of passengers. b. Without calculations, determine the contribution margin at the break-even point.

QUESTION 3 E22.11 E22.11 (LO 3, 4) near a medical çenter and an international airport. Spencer 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. Compute break-even point. Sales (1,500 passengers) Spencer Kars provides shuttle service between four hotels $36,000 Variable costs Fuel $ 5,040 Tolls and parking 3,100 Maintenance 860 9,000 Contribution margin 27,000 Fixed costs Salaries 15,700 Depreciation 1,300 Insurance 1,000 18,000 Net income $ 9,000 Instructions a. Calculate the break-even point in (1) dollars and (2) number of passengers. b. Without calculations, determine the contribution margin at the break-even point.

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Description: QUESTION 3E22.11E22.11 (LO 3, 4)near a medical çenter and an international airport. Spencer Kars uses two 10-passenger vans to offer 12 round trips per day. A recent month's activity in the formof a cost-volume-profit income statement is shown below

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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