0 E6.28 (102) Service Friendly Airways Ltd. a small two-plane passenger airline, has asked for your assistance in some basic analysis of its operations. The planes seat 10 passengers each, and th fly commuters from Friendly's base airport to the major city in the province, Metropolis. Each month, 40 round-trip flights are made. Shown below is a recent month's activity in the form of a g volame-profit income statement. Fare revenues (400 fares) $50,000 Variable costs Fuel $17,900 Snacks and drinks 1.400. Landing fees 2,000 Supplies and forms 1,200 22.500 Contribution margin 27.500 Fixed costs Depreciation 3.000 Salaries 15.000 Advertising 2,250 Airport hangar fem Operating income 1,750 22,000 $3,500 Instructions a. Calculate the break-even point in (1) dollars and (2) number of fares. b. Without calculations, determine the contribution margin at the break-even point. Prepare a CVP graph and calculate the break-even point and margin of safety