to break even?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
A. How many trips must Bristol sell every month to break even?
B. Bristol's owner believes that 350 trips is a reasonable

Transcribed Image Text:Bristol Car Service offers airport service in a mid-size city. Bristol charges $50 per trip to or from the airport. The varlable cost for a trip
totals $42, for fuel, driver, and so on. The monthly fixed cost for Bristol Rainbow Tours is $2,720.
Required:
a. How many trips must Bristol sell every month to break even?
b. Bristol's owner believes that 350 trips is a reasonable forecast of the average monthly demand. What is the margin of safety in terms
of the number of airport trips?
a.
Break-even point
trips
b. Margin of safety
trips
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