Airport Connection provides shuttle service between four hotels near a medical center and an international airport. Airport Connection 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.

(a) Calculate the break-even point in (1) Dollars and (2) Number of fares.(b) Without calculations, determine the contribution margin at the break-even point.

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Fare revenues (1,440 fares) $36,000 Variable costs $ 5,040 Fuel Tolls and parking 3,100 Maintenance 500 8,640 Contribution margin 27,360 Fixed costs Salaries 13,000 Depreciation 1,300 Insurance 1,128 15,428 $11,932 Net income