Spencer Kars provides
between four hotels near a medical center and an
international airport. Spencer Kars uses two 10-passengers 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.
Fare revenues (1,500 fares)
Tk. 36.000
Variable costs
Fuel
Tolls and parking
Maintenance
Tk. 5.040
3,100
860
Contribution margin
9.000
27.000
Fixed costs
Salaries
Depreciation
insurance
15,700
1,300
1,000
Net income
18.000
Tk. 9.000
Required:
Calculate the break-even point in taka and number of fares.
ії.
Without calculations, determine the contribution margin at the break-even point