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 $16,780 Snacks and drinks 710 Landing fees 2,000 Supplies and forms 1,150 20,640 Contribution margin 27,360 Fixed costs Depreciation 2,950 Salaries 13,810 Advertising 300 Airport hanger fees 1,750 18,810 Net income $8,550 Calculate the break even point in dollars Calculate the break even point in number of passenger flights Without calculations, determine the contribution margin at the break even point 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

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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 passenger flights)		$48,000
Variable costs
Fuel	$16,780
Snacks and drinks	710
Landing fees	2,000
Supplies and forms	1,150	20,640
Contribution margin		27,360
Fixed costs
Depreciation	2,950
Salaries	13,810
Advertising	300
Airport hanger fees	1,750	18,810
Net income		$8,550

Calculate the break-even point in dollars.

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

Without calculations, determine the contribution margin at the break-even point.

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?