Question

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 $16,894 Snacks and drinks 790 Landing fees 2,100 Supplies and forms 1,000 20,784 Contribution margin 27,216 Fixed costs Depreciation 3,100 Salaries 14,545 Advertising 400 Airport hanger fees 1,800 19,845 Net income $7,371 (a1) Calculate the break-even point in dollars. Break-even point $Type your answer here 2.Calculate Contribution Margin Ratio Fare 3. Break even point in terms of $$ 4. Calculate change of income

Answer 1