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7,241 Calculate the break-even point in number of passenger flights. If ticket prices were decreased by 10%, passenger flights would increase by 25%. However, total

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7,241 Calculate the break-even point in number of passenger flights. If ticket prices were decreased by 10%, passenger flights would increase by 25%. However, total variable costs would increase by the same percentage as passenger flights. (1) How much would net income be impacted by this change? Evnom Comfi Airways, Inc., a small two-plane passenger airline, has asked for your assistance in some basic analysis of its operations. Both planes seat 10 passengers each, and they fly commuters from Comfi's base airport to the major city in the state, Metropolis. Each month, 40 round-trip flights are made. Shown below is a recent month's activity in the form of a cost-volume- profit income statement Fare revenues (400 passenger flights) $48,000 Variable costs Fuel $17,778 Snacks and drinks 730 Landing fees 1,800 Supplies and forms 1,100 21,408 Contribution margin 26,592 Fixed costs Depreciation 3,050 Salaries 14,190 Advertising 600 Airport hanger foon 1.550 19,390 Net Income $7.202

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