Exercise 6-4 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. $48,000 $17,320 700 1,900 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 21,120 26,880 3,100 13,280 600 1,500 18,480 $8,400 Net income Calculate the break-even point in dollars. Break-even point LINK TO TEXT Calculate the break-even point in number of passenger flights. Break-even point flights LINK TO TEXT Without calculations, determine the contribution margin at the break-even point. Break-even point $ LINK TO TEXT 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? Net income to $ (2) Should the ticket price decrease be adopted? Click if you would like to Show Work for this question: Open Show Work