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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) $64,000 Variable costs Fuel Snacks and drinks Landing fees Supplies and forms 18,600 800 1,800 1,200 22,400 Contribution margin 41,600 Fixed costs Depreciation Salaries Advertising Airport hanger fees 2,950 15,500 600 1,750 20,800 Net income $20,800 Calculate the break-even point in dollars. Break-even point Calculate the break-even point in number of passenger flights. Break-even point flights Without calculations, determine the contribution margin at the break-even point. Break-even point
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