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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 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 $15,194 Snacks and drinks 710 Landing fees 2,000 Supplies and forms 1,200 19,104 Contribution margin 28,896 Fixed costs Depreciation 3,000 Salaries 15,418 Advertising 300 Airport hanger fees 1,750 20,468 Net income $8,428 (21 ) Screenshot Calculate the break-even point in dollars
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