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Blossom Airways Inc, a small two-plane passenger airline, has asked for your assistance in some basic analysis of its operations. The planes seat 10 passengers

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Blossom Airways Inc, a small two-plane passenger airline, has asked for your assistance in some basic analysis of its operations. The planes seat 10 passengers each, and they fly commuters from Blossom's base airport to the major city in the province, 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. (a) Calculate the break-even point in dollars and number of fares. (b) Without calculations, determine the contribution margin at the break-even point. (c) If fares were decreased by 10\%, an additional 100 fares could be generated. However, total variable costs would increase by 20%. (Round answers to 0 decimal place, e.g. 1,225.) (1) How much would net income be impacted by this change? (2) Should the fare decrease be adopted

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