Homework Help Question & Answers

Exercise 19-4 (Part Level Submission) Comfi Airways, Inc., a small two-plane passenger airline, has asked for...

Exercise 19-4 (Part Level Submission) Comfi Airways, Inc., a small two-plane passenger airline, has asked for your assistance(a2) Your answer is correct. Calculate the break-even point in number of passenger flights. Break-even point T 205 flights Cl(b) r answer is correct. Without calculations, determine the contribution margin at the break-even point. Break-even point 18(c) Your answer is partially correct. Try again. If ticket prices were decreased by 10%, passenger flights would increase by

Exercise 19-4 (Part Level Submission) 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 $25,200 800 1,800 1,000 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 28,800 35,200 3,100 12,940 300 1,700 18,040 $17,160 Net income (a1) Your answer is correct. Calculate the break-even point in dollars. Break-even point 32800
(a2) Your answer is correct. Calculate the break-even point in number of passenger flights. Break-even point T 205 flights Click if you would like to Show Work for this question: Open Show Work
(b) r answer is correct. Without calculations, determine the contribution margin at the break-even point. Break-even point 18040 Click if you would like to Show Work for this question: Open Show Work
(c) 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? 1440 Net income increases to (2) Should the ticket price decrease be adopted? Click if you would like to Show Work for this question: Open Show Work
0 0
Report
Answer #1
a1)
Total Fixed Costs (a) $18,040
Contribution Margin Ratio ($35,200/$64,000) (b) 0.55
Break-even point in dollars (a / b) $32,800
a2)
Total Fixed Costs (a) $18,040
Contribution Margin per unit ($35,200/400 passengers) (b) $88
Break-even point in units (a / b) 205
b)
Break-even point in units (a) 205
Contribution Margin per unit ($35,200/400 passengers) (b) $88
Contribution Margin at Break-even point $18,040
c)
Revised selling price per unit ($64,000/400 = $160 - 10% of $160) (a) $144
Number of Passengers (400 + 25% of 400) (b) 500
Revised Sales Revenue (a * b) $72,000
Less: Variable Costs ($28,800/400 = $72 * 500 passengers) ($36,000)
Revised Contribution Margin $36,000
Less: Fixed Costs ($18,040)
Revised Net Income $17,960
The net income is Increased from $17,160 to $17,960.
Know the answer?
Add Answer to:
Exercise 19-4 (Part Level Submission) Comfi Airways, Inc., a small two-plane passenger airline, has asked for...
Your Answer: Your Name: What's your source?
Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Question 2 Comfi Airways, Inc., a small two-plane passenger airline, has asked for your assistance in...

    Question 2 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. assement de trinajohasem sikerhere are istorice $48,000 Fare revenues (400 passenger flights) Variable costs...

  • Exercise 6-4 (Part Level Submission) Comfi Airways, Inc., a small two-plane passenger airline, has asked for...

    Exercise 6-4 (Part Level Submission) 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. $48,000 $ 16,780 710 2,000 1,150 Fare revenues (400 passenger flights)...

  • Comfi Airways, Inc., a small two-plane passenger airline, has asked for your assistance in some basic...

    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. $40,000 y Study $13,460 1,900 1,200 17,280 30,720 Fare revenues (400 passenger flights) Variable costs Fuel...

  • Exercise 6-4 (Part Level Submission) Comfi Airways, Inc., a small two-plane passenger airline, has asked for...

    Exercise 6-4 (Part Level Submission) 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 a recent month's activity in the form of a cost-volume-profit income statement. $48,000 $ 16,780 710 2,000 1,150 Fare revenues (400 passenger flights) Variable...

  • Comfi Airways, Inc., a small two-plane passenger airline, has asked for your assistance in some basic...

    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) Variable costs $64,000 Fuel Snacks and drinks Landing fees Supplies and...

  • Comfi Airways, Inc., a small two-plane passenger airline, has asked for your assistance in some basic...

    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. $48,000 $17,040 780 2,100 1,200 Fare revenues (400 passenger flights) Variable costs Fuel Snacks and drinks...

  • Exercise 19-04 Comfi Airways, Inc., a small two-plane passenger airline, has asked for your assistance in...

    Exercise 19-04 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 Camfi'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. $48,000 $13,460 720 1,900 1,200 Fare revenues (400 passenger flights) Variable costs Fuel Snacks...

  • E6.4 (LO 1), AP Service Comfi Airways, Inc., a small two-plane passenger airline, has asked for...

    E6.4 (LO 1), AP Service Comfi Airways, Inc., a small two-plane passenger airline, has asked for your assistance in some basic analysis 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 inco statement. Compute break-even point and prepare CVP income statement. $48,000 $14,000 800 2,000 1,200...

  • Comfi Airways, Inc., a small two-plane passenger airline, has asked for your assistance in some basic...

    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) $48,000 Variable costs     Fuel $13,120     Snacks and drinks 780     Landing fees...

  • CALCULATOR FULL SCREEN PRINTER VERSION BACK NEXT Exercise 19-04 Comfi Airways, Inc., a small two-plane passenger...

    CALCULATOR FULL SCREEN PRINTER VERSION BACK NEXT Exercise 19-04 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. $48,000 $17,320 700 1,900 1,200 Fare revenues...

Free Homework App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.