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 thr major city in the state, Metropolis. Each month, 40 round-trip flights are made. Shown below is a recent noth's activity in the form of a cost-volume-profit income statement. Fares revenues (400 passenger flights) $48,000
Variable costs
Fuel $17,320
Snacks and drinks $700
Landing fee $1900
Supplies and forms $1200. $21,120
Contribution margin. $26,880
Fixed costs
Depreciation $3,100
Salaries $13,280
Advertising $600
Airport hanger fees $1,500. $18,480
Net income. $8,400