Bristol car service offers airport service in a mid-size, Financial Accounting

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Bristol car service offers airport service in a mid-size

Bristol Car Service offers airport service in a mid-size city. Bristol charges $46 per trip to or from the airport. The variable cost for a trip totals $26, for fuel, driver, and so on. The monthly fixed cost for Bristol Rainbow Tours is $5,200.

Required:

a. How many trips must Bristol sell every month to break even?

Break-even point trips

b. Bristol's owner believes that 280 trips is a reasonable forecast of the average monthly demand. What is the margin of safety in terms of the number of airport trips?

Margin of safety trips

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