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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) $64,000
Variable Costs
Fuel $15,240
Snacks and Drinks 760
Landing Fees 2,000
Supplies and Forms 1,200 19,200
Contribution Margin 44,800
Fixed Costs
Depreciation 3,000
Salaries 16,840
Advertising 300
Airport Hanger Fees 1,700 21,840
Net Income 22,960

a. Calculate the break-even point in dollars.

Break-even point $

b. Calculate the break-even point in number of passenger flights.

Break-even point flights

c. Without calculations, determine the contribution margin at the break-even point.

Break-even point $

d. 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?

Net income to $

(2) Should the ticket price decrease be adopted?

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Patrina Schowalter
Patrina SchowalterLv2
28 Sep 2019

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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 $12,280 Snacks and drinks 760 Landing fees 1,800 Supplies and forms 1,000 15,840 Contribution margin 32,160 Fixed costs Depreciation 3,100 Salaries 16,458 Advertising 500 Airport hanger fees 1,650 21,708 Net income $10,452 Calculate the break-even point in dollars. Break-even point $ LINK TO TEXT Calculate the break-even point in number of passenger flights. Break-even point flights LINK TO TEXT Without calculations, determine the contribution margin at the break-even point. Break-even point $ LINK TO TEXT 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.

Help me please with these five questions please!! please 1-Faune Furniture Co. consists of two divisions, Bedroom Division andDining Room Division. The results of operations for the most recentquarter are: Bedroom Division Dining Room Division Total Sales$509,900 $753,900 $1,263,800 Variable costs 239,900 446,800 686,700Contribution margin $270,000 $307,100 $ 577,100 Don't show me thismessage again for the assignment Determine the company’s sales mix.(Round answers to 2 decimal places, e.g. 0.15.) Sales mix BedroomDivision Dining Room Division Don't show me this message again forthe assignment Determine the company’s weighted-averagecontribution margin ratio. (Round answers to 2 decimal places, e.g.0.15.) The company’s weighted-average contribution margin ratioQuestion number 2----- In Briggs Company, data concerning twoproducts are contribution margin per unit—Product A $13, Product B$16; machine hours required for one unit—Product A 4, Product B 4.Compute the contribution margin per unit of limited resource foreach product. (Round answers to 2 decimal places, e.g. 0.15.)Product A Product B Contribution margin per unit of limitedresource $ $ Question number 3---- Comfi Airways, Inc., a smalltwo-plane passenger airline, has asked for your assistance in somebasic analysis of its operations. Both planes seat 10 passengerseach, and they fly commuters from Comfi’s base airport to the majorcity in the state, Metropolis. Each month, 40 round-trip flightsare made. Shown below is a recent month’s activity in the form of acost-volume-profit income statement. Fare revenues (400 fares)$49,800 Variable costs Fuel $18,500 Snacks and drinks 700 Landingfees 2,030 Supplies and forms 1,180 22,410 Contribution margin27,390 Fixed costs Depreciation 2,970 Salaries 12,810 Advertising430 Airport hanger fees 1,720 17,930 Net income $9,460 Calculatethe break-even point in (1) dollars and (2) number of fares. (Roundanswers to 0 decimal place, e.g. 1,225.) 1. Break-even point $ 2.Break-even point fares Without calculations, determine thecontribution margin at the break-even point. Break-even point $ Iffares were decreased by 10%, an additional 100 fares could begenerated. However, total variable costs would increase by 20%.(Round answers to 0 decimal place, e.g. 1,225.) (1) How much wouldnet income be impacted by this change? Net incomeincreasesdecreases to $ (2) Should the fare decrease be adopted?NoYes Question number 4---- Yard Tools manufactures lawnmowers,weed-trimmers, and chainsaws. Its sales mix and contribution marginper unit are as follows. Sales Mix Contribution Margin per UnitLawnmowers 20 % $50 Weed-trimmers 50 % $30 Chainsaws 30 % $50 YardTools has fixed costs of $6,829,600. Compute the number of units ofeach product that Yard Tools must sell in order to break even underthis product mix. Lawnmowers units Weed-trimmers units Chainsawsunits question number 5 ----- Exercise 19-8 Express Delivery is arapidly growing delivery service. Last year, 81% of its revenuecame from the delivery of mailing “pouches” and small, standardizeddelivery boxes (which provides a 11% contribution margin). Theother 19% of its revenue came from delivering non-standardizedboxes (which provides a 62% contribution margin). With the rapidgrowth of Internet retail sales, Express believes that there aregreat opportunities for growth in the delivery of non-standardizedboxes. The company has fixed costs of $13,180,000. What is thecompany’s break-even point in total sales dollars? At thebreak-even point, how much of the company’s sales are provided byeach type of service? (Use Weighted-Average Contribution MarginRatio rounded to 4 decimal places e.g. 0.2552 and round finalanswers to 0 decimal places, e.g. 2,510.) Total break-even sales $Sale of mail pouches and small boxes $ Sale of non-standard boxes $The company’s management would like to hold its fixed costsconstant but shift its sales mix so that 62% of its revenue comesfrom the delivery of non-standardized boxes and the remainder frompouches and small boxes. If this were to occur, what would be thecompany’s break-even sales, and what amount of sales would beprovided by each service type? (Use Weighted-Average ContributionMargin Ratio rounded to 4 decimal places e.g. 0.2552 and roundfinal answers to 0 decimal places, e.g. 2,510.) Total break-evensales $ Sale of mail pouches and small boxes $ Sale ofnon-standardized boxes $

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