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 passenger flights)				$48,000
Variable costs
Fuel		$17,354
Snacks and drinks		760
Landing fees		2,100
Supplies and forms		1,050		21,264
Contribution margin				26,736
Fixed costs
Depreciation		2,900
Salaries		14,595
Advertising		400
Airport hanger fees		1,600		19,495
Net income				$7,241

Calculate the break-even point in number of passenger flights.

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?