Cost Volume Profit

Spencer kars provides shuttle services between four hotels near a medical center 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.

Instructions

  1. Calculate the break-even point in (1) dollars and (2) number of fares.
  2. Without calculation, determine the contribution margin at the break-even point

Solution

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