Answered step by step
Verified Expert Solution
Question
1 Approved Answer
i just need help on this last part Comfi Airways, Inc., a small two-plane passenger airline, has asked for your assistance in some basic analysis
i just need help on this last part
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 Cornfi'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 $14,000 800 2,000 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 18,000 30,000 3,000 15,000 500 1,750 20,250 59,750 Net income Calculate the break-even point in dollars. Break-even point 32400 Calculate the break-even point in number of passenger flights. Break-even point 270 7 flights Without calculations, determine the contribution margin at the break-even point. Break-even point 20,250 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 sI (2) Should the ticket price decrease be adoptedStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started