Calculate the break even point in (1) dollars and (2) number of fares.
1. Break even point……$
2. Break even point……fares
Without calculations, determine the contribution margin at the break even point
Break even point………$
If fares were decreased by 10% an additional 100 fares could be generated. However, total variable costs would increase by 20%.
(1) How much would net income be impacted by the change?
Net Income….decreases or increases (choose one) to $………
(2) Should the fare decrease be adopted? Yes or No (choose one)
