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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 operati
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 Snacks and drinks Landing fees Supplies and forms Contribution margin Fixed costs Depreciation Salaries Advertising Airport hanger fees Net Income 2,950 18,090 1,700 23,040 $7,680 Calculate the break-even point in dollars. Break-even points Calculate the break-even point in number of passenger flights. flights Break-even point Without calculations, determine the contribution margin at the break-even point. Break-even point if ticket prices were decreased by 10%, passenger flights would increase by 254. However, total variable costs would increase by the same percentage as passenger Mights. (1) How much would net income be impacted by this change? Net Income (2) Should the ticket price decrease be adopted? Yes Click If you would like to show Work for this questioni Doen Shawweck SAVE FOR LATER Question Attempts Unlimited
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margin to Revised Contribution noir and Net Income or Fajr Revenues (soox $108) $54000 Less: $ 21,600 Total variable Cost opSolution 4 Ticket Price per voort west s passenger - $48000 ista yoooh a 9 $120 per Passenger Revised Ticket Price = 120.890%To BEP Top lots - Fixed Cost Etusitule Consibution per passenger $ 23040 $76.8 1,300 Passenger-flight $ sila cy to Ratio OMOCSolution (1) Cellulation of Probit volume Patio Pl Radio Contribution to Хm Revenue 30720 . Xlo 48ooo dzi 64% all Break-even

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