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. $48,000 $14,000 800 Fare revenues (400 passenger flights) Variable costs Fuel Snacks and drinks Landing fees Supplies and forms Contribution margin Fixed costs Depreciation 2,000 1.200 18,000 30,000 3,000 Salaries 15.000 Advertising 500 Anne Fare revenues (400 passenger flights) $48,000 Variable costs Fuel $14,000 Snacks and drinks 800 Landing fees 2,000 1,200 18,000 Supplies and forms Contribution margin Fixed costs 30,000 Depreciation 3,000 Salaries 15,000 500 Advertising Airport hanger fees 1.750 20.250 Net income $9.750 (a1) Calculate the break-even point in dollars. Break-even point $ e Textbook and Media Save for Later (a2) Calculate the break-even point in number of passenger flights. Break-even point flights (b) Without calculations, determine the contribution margin at the break-even point. Break-even point $ 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 ~ to $ (2) Should the ticket price decrease be adopted