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Hello all I need help in answering the 3rd picture at the bottom that is about net income. it is the question How much would
Hello all I need help in answering the 3rd picture at the bottom that is about net income. it is the question "How much would net income be impacted by this change? " Thank you for your time.
ER PRINTER VERSION 4BACK NEXT Exercise 19-4 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 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 adtivity in the form of a cost-volume-profit income statement. Fare revenues (400 passenger flights) Variable costs $64,000 Fuel Snacks and drinks Landing fees Supplies and forms $22,720 720 1,800 1,00026,240 37,760 Contribution margin Fixed costs Depreciation Salaries Advertising Airport hanger fees 14,202 400 1,800 19,352 $18,408 Net income Calculate the break even point in dollars Break-even point Your answer is correct. Calculate the break-even point in number of passenger flights. Break-even point 205 flights Without calculations, determine the contribution margin at the break even point Break even point 1935 SHOW SOLUTION LINK TO TEX Your answer is partially correct. Try again. 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 (1) How much would net income be impacted by this change? ghts. Oto s-- Net income increaseS (2) Should the ticket price decrease be adoptedStep by Step Solution
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