please help Exercise 20-4 (Part Level Submission) Comfi Airways, Inc., a small t

Question

please help

Exercise 20-4 (Part Level Submission) Comfi Airways, Inc., a small two-plane passenger airline, has asked for your assistance in some basic analysis or 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 or a cost-volume-profit income statement. $64,000 Fare revenues (400 passenger flights) Variable costs Furl Snacks and drinks Landing fees Supplies and forms $15,240 760 2,000 1,200 19,200 44,800 Contribution margin Fixed costs Salaries Advertising Airport hanger fees 3,000 16,840 300 1,700 21,840 $22,960 Net income Calculate the break-even point in dollars. Break-even point Attempts: 0 of 3 used (a2) The parts of this question must be completed in order, This part www be available when you complete the pavt above. The parts of this question must be completed in order. This part www be available when you complete the pavt above The parts of this question must be completed in order. This part will be available when you complete the part above.

Explanation / Answer

Break even point is a point where no profit and no loss.

Break even point ( in units )= Fixed cost/(sales price - variable cost per passenger)

Fixed cost = $ 21840

Sales price = $64000/400 = 160 per passenger

Variable cost per passenger= $19200/400 =48 per passenger

Break even point (in passenger) = $21840/(160- 48)

= $21840/112

= 195 passenger

Break even point ( in dollar) = 195 passenger* sales price

= 195* 160

= $31200

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