Comf 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) $64,000 Variable costs Fuel $21,440 Snacks and drinks 720 Landing fees 1.800 Supplies and forms 1,000 24,960 Contribution margin 39,040 Fixed costs Depreciation 2.950 Salaries 14.470 Advertising Airport hanger fees 1,500 19,520 Net income $19,520 600 Calculate the break-even point in dollars. Break-even point $ e Textbook and Media Calculate the break-even point in number of passenger flights. Break-even point flights Without calculations, determine the contribution margin at the break-even point. Break-even point e Textbook and Media 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 v to $ (2) Should the ticket price decrease be adopted? e Textbook and Media