Question
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 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
Fuel$17,778
Snacks and drinks730
Landing fees1,800
Supplies and forms1,100 21,408
Contribution margin26,592
Depreciation3,050
Salaries14,190
Advertising600
Airport hanger fees1,550 19,390
Net income$7,202
What is the contribution margin at the break-even point?
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