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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
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 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) $48,000 Variable costs Fuel $13,604 Snacks and drinks 720 Landing fees 1,900 Supplies and forms 1,200 17,424 Contribution margin 30,576 Fixed costs Depreciation 2,950 Salaries 16,071 Advertising 300 Airport hanger fees 1,700 21,021 Net income $9,555
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