16 16 Chapter 19 Discussion Forum Use this forum to post your answer to the Chapter 19 Discussion TIF 19-3- (text page 993). Answer all questions in your primary post. You must reply to two other students. Refer to the grading rubric for point scoring guidelines. Forum Guidance: This is a really challenging discussion forum. There will be a process change this week. You will not be able to see the other student posts until you make a primary post. Once again, you do not have to write a memo, rather post the content of the memo as the primary post. Here is the challenge. The topic of revenue increases or expense reductions using the concept of break-even is well covered in the chapter. Your task is to pick one of the chapter sections that is relevant and build your response. The CEO of the company has presented you with a situation and their thoughts, your job as the CFO is to return with solid accounting advise and analysis. Full points will go to the primary posts that are on time and embrace one or more concepts from the chapter. Reply posts must be thoughtful and either politely disagree or add additional managerial thought. Simple posts of agreement will receive point deductions. TIF 19-3 Communication Sun Airlines is a commercial airline that targets business and non-business travelers. In recent months, the airline has been unprofitable. The company has break-even sales volume of 75% of capacity, which is significantly higher than the industry average of 65%. Sun's CEO, Neil Armstrong, is concerned about the recent string of losses and is considering a strategic plan that could reduce the break-even sales volume by increasing ticket prices. He has asked for your help in evaluating this plan. Write a brief memo to Neil Armstrong evaluating this strategy