a Secure https:/ew tion.com/flow/connect.html Saved 5 Profits have been decreasing for several years at Pegasus Airtlines in an effort to improve the company's performance, the company is thinking about dropping several flights that appear to be unprofitable. 4.28 points A typical income statement for one round-trip of one such flight (flight 482) Is as follows: ticket price) Variable expenses ($14.00 per person) $ 3,300 616 100.0% 18.7 2,684 81.3% Flight expenses: Salaries, flight crew Flight $ 310 690 Fuel for aircraft Liability insurance Salaries, flight assistants 170 210 185 Overnight costs for flight crew and assistants at destination 2,715 Total flight expenses Net operating loss (31) The following additional information is available about flight 482 a. Members of the flight crew are paid fixed annual salaries, whereas the flight assistants are paid based on the n they complete the destination of the flight is in a "high-risk" equipment Dropping flight 482 would have no effect on the compan insurance is a special charge assessed against flight 482 because in the opinion of the insurance company. area. The remaining two-thirds would be unaffected by a decision to drop flight 482 ration expense is an allocation of ground crews' salaries and depreciation of ground y's total baggage loading and flight preparation expenses asus Airlines has no authorization at present to replace it with another flight e. Aircraft depreciation is due entirely to obsolescence Depreciation due to wear and tear is negligible f. Dropping flight 482 would not allow Pegasus Airlines to reduce the number of aircraft in its payroll. K Prey 5 of 7l Next> here to search