Part C?

Without calculations, determine the contribution margin at the break-even point. Break-even point eTextbook and Media Attempts: 1 of 3 us (c) If ticket prices were decreased by 10%, passenger flights would increase by 25%. However, total variable costs would increase the same percentage as passenger flights. Calculate the break-even point in sales dollars. Break-even point eTextbook and Media Assistance Use Solution (a2) Your answer is correct. Calculate the break-even point in number of passenger flights. Cullumber 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 Cullumber'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. 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 filights. (1) How much would net income be impacted by this change? Net income to $ (2) Should the ticket price decrease be adopted? Assistance Used