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**Just need help with the one I got wrong, Thanks** Exercise 19-4 Comfi Airways, Inc., a small two-plane passenger airline, has asked for your assistance
**Just need help with the one I got wrong, Thanks**
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 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. $64,000 $15,240 760 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 Net income 19,200 44,800 3,000 16,840 300 1,700 21,840 $22,960 Ivui albvv i l CI Ct. Calculate the break-even point in dollars. Break-even point Break-even point 31,200 31,200 LINK TO TEXT Your answer is correct. Calculate the break-even point in number of passenger flights. Break-even point flights LINK TO TEXT your answer is correct. Without calculations, determine the contribution margin at the break-even point. Break-even point 21,840 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 flights. (1) How much would net income be impacted by this change? Net income increases to case be adopted yes (2) Should the ticket price decrease be adopted? Click if you would like to Show Work for this question: Open Show Work LINK TO TEXTStep by Step Solution
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