Current Attempt in Progress Pharoah 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 Pharoah's base airport to the major city in the state, Metropolis. Each month, 40 round-trip flights are made. The following is a recent month's activity in the form of a cost-volume-profit income statement Fare revenues (400 passenger flights) Variable costs $53,760 Fuel $15,680 Snacks and drinks 896 2.240 Landing fees Supplies and forms 1,344 20,160 Contribution margin 33,600 Fixed costs 9.17 / 10 Contribution margin 33,600 Fixed costs Depreciation 3,360 16,800 Salaries Advertising Airport hanger fees Net income 560 1.960 22.680 $10.920 (a1) your answer is partially correct. 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 $ 1 (2) Should the ticket price decrease be adopted? Yes e Textbook and Media Assistance Used Save for Later Attempts: 2 of 5 used Submit