CALCULATOR FULL SCREEN PRINTER VERSION 4 BACK NEX 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. Fare revenues (400 passenger flights) $64,000 Variable costs Fuel $18,600 Snacks and drinks 800 Landing fees 1,800 Supplies and forms 1,200 22,400 Contribution margin 41,600 Fixed costs 2.950 Depreciation 15,500 Salaries 600 Advertising 1,750 20,800 Airport hanger fees $20,800 Net income Calculate the break-even point in dollars. Break-even point CALCULATOR FULL SCREEN PRINTER VERSION BACK NEX 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? to $ Net income (2) Should the ticket price decrease be adopted? Open Show Work Click if you would like to Show Work for this question: CALCULATOR FULL SCREEN PRINTER VERSION BACK NEX 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? to $ Net income (2) Should the ticket price decrease be adopted? Open Show Work Click if you would like to Show Work for this