Spencer Kars provides shuttle service 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
|Fare revenues ( 1,390 fares)||$ 41,700|
|Tolls and parking||3,447|
|Net income||$ 14,972|
1.Calculate the break-even point in dollars.
2.Calculate the break-even point in number of fares.