Weygandt, Financial &Managerial; Accounting,2 Help I System ES Exercise 20-4 (Pa

Question

Weygandt, Financial &Managerial; Accounting,2 Help I System ES Exercise 20-4 (Part Level Submission) Comn Airways, Inc., a small two-plane passenger airline, has asked for your assstrce in some base mars softs open ons -res- 10 passengers each, and they fly commuters from Comfi's base airport to the major city in the state, Metropolis. Each month 40 reunid-tnip tghes are made. Shown below is a recent monith's activity in the form of a cost-volume-proft income statement Fare revenues (400 passenger flights) Variable costs $64,000 $18,600 Snacks and drinks Landing fees Supplies and forms 1,800 1,200 22,400 1,600 Contribution margin Fixed costs 2,950 15,500 1,750 Airport hanger fees Net income (al) Your answer-correct. Calculate the break-even point in dollars 0

Explanation / Answer

C Net income with increased passenger flights = (64000*0.9*1.25)-(22400*1.25)-20800= 23200 Net income increases to $23200

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