Blossom 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 Blossom's base airport to the major city in the state, Metropolis. Each month, 40 round-trip flights are made. The following is a recent month's activity in the form of a cost-volume-profit income statement. Fare revenues (400 passenger flights) $59,520 Variable costs Fuel $17,360 Snacks and drinks 992 Landing fees 2,480 Supplies and forms 1,488 22,320 Contribution margin 37,200 Fixed costs Depreciation 3,720 18,600 Salaries 620 Advertising or fees 2,170 25,110 Fuel $17,360 Snacks and drinks 992 Landing fees 2,480 Supplies and forms 1,488 22,320 Contribution margin 37,200 Fixed costs Depreciation 3,720 Salaries 18,600 620 Advertising Airport hanger fees 2,170 25,110 $12,090 Net income 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? Net income decreases to $ 6157.53 (2) Should the ticket price decrease be adopted? Yes