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Question 11 Pharoah provides shuttle service between four hotels near a medical center and an international...

Question 11

Pharoah provides shuttle service between four hotels near a medical center and an international airport. Pharoah 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.
Sales (1,340 passengers) $37,520
Variable costs
    Fuel $5,673
    Tolls and parking 2,739
    Maintenance 968 9,380
Contribution margin 28,140
Fixed costs
    Salaries 12,700
    Depreciation 2,100
    Insurance 2,000 16,800
Net income $11,340

(b)

Without calculations, determine the contribution margin at the break-even point.
Contribution margin at the break-even point $

Break Even Point in Dollars - $22,400

Break Even Number of Passengers - 800

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