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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 Comf'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 Fare revenues (400 passenger flights) Variable costs Fuel $17.078 710 1,800 Snacks and drinks Landing fees Supplies and forms Contribution margin 1.100 20,688 27.312 Fixed costs Depreciation 3,000 Salaries 14,815 300 Advertising Airport hanger fees 1.800 19.915 Net income $ 7.397 Calculate the break-even point in dollars. Break-even point $ eTextbook and Media Calculate the break-even point in number of passenger flights. Break-even point flights eTextbook and Media Without calculations, determine the contribution margin at the break-even point. Break-even point $ Without calculations, determine the contribution margint at the break-even point Break-even points 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 tos (2) Should the ticket price decrease be adopted
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