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. $64,000 $18,600 800 1,800 1,200 Fare revenues (400 passenger flights) Variable costs Fuel Snacks and drinks Landing fees Supplies and forms Contribution margin Fixed costs Depreciation Salaries Advertising Airport hanger fees 22,400 41,600 2,950 15,500 600 1,750 20,800 $20,800 Net income x Your answer is incorrect. Try again Calculate the break-even point in dollars Break-even point T 20800 If ticket prices were decreased by 10%, passenger fights 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 increases Not income increases 0 13 (2) should the ticket price decrease be adopted a (2) Should the ticket price decrease be adopted