CAVU Air Express (CAVU) enters into contracts with several medical equipment companies to deliver medical equipment to remote locations by air. Under the contracts CAVU is entitled to recover $1 per air mile per equipment package. Each flight typically hauls 10 equipment packages. CAVU’s cost to cover aircraft maintenance, fuel, insurance, tie down, reserves, dead legs, and pilot compensation equal to $5 per air mile. Two CAVU employees, who have signed employment agreements prohibiting them from engaging in any non CAVU air transportation related activity, set up a company to refuel CAVU’s planes at the destination airports. They buy fuel at $5 per gallon and re-sell it to CAVU at $8 per gallon. CAVU aircraft typically burn .20 gallons of fuel per mile. A typical flight covers 1,000 air miles. How much profit would CAVU earn on a typical flight? How much profit should CAVU have earned on a typical flight?