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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

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 Comfis base airport to the major city in the state, Metropolis. Each month, 40 round-trip flights are made. Shown below is a recent months activity in the form of a cost-volume-profit income statement.

Fare revenues (400 fares) $47,100
Variable costs
Fuel $16,954
Snacks and drinks 770
Landing fees 1,940
Supplies and forms 1,060 20,724
Contribution margin 26,376
Fixed costs
Depreciation 3,050
Salaries 14,088
Advertising 420
Airport hanger fees 1,650 19,208
Net income

$7,168

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?

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