Lappin Community Transit LCT is a notforprofit mostly volunteer organization that provides transportation to seniors. As a notfor
profit, it refers to an excess of revenues over costs as a "surplus" and an excess of costs over revenues as a "deficit." LCT prices a
roundtrip ticket to downtown at $ per trip. The variable costs of a ride are $ The fixed costs of LCT primarily for its paid staff
and van leases, are $ annually. The town of Lappin provides LCT with a flat subsidy, partially funded by downtown merchants,
of $ annually plus a pertrip subsidy of $
Required:
a What is the breakeven point for LCT in terms of number of roundtrip ticket sold?
b The director of LCT expects riders this year and asks you if it will operate at a surplus or deficit. What is your answer?
Complete this question by entering your answers in the tabs below.
What is the breakeven point for LCT in terms of number of roundtrip ticket sold?
Note: Do not round intermediate calculations. Round up your answer for "trips" to the nearest whole number.
