contabile A typical income statement for one such flight (Flight 482) follows 56:53 $5,000 100.0 1.0 6,000 45.000 Ticket revenue (100 seats .0% occupancy $625 ticket price) test Variable expenses (50 per person) Contribution margin Les Flight expenses Salarles, flight crew Flight promotion Depreciation of aircraft Fuel for aircraft Liability Insurance Salaries, Flight attendants Bagage loading and flight preparation Overnight costs for Flight crew and attendants at destination Total Flight expenses Wet operating loss 5,250 2.500 5.000 24,000 15,000 1,750 5. 1.000 61,500 5 (15,500) The following additional information is available about Flight 482: a. Members of the flight crew are paid fixed annual salaries, whereas the flight attendants are paid by the flight b. One third of the liability insurance is a special charge assessed against Flight 482 because in the opinion of the insurance company, the destination is in a high-risk area. The remaining two thirds would be unaffected by a decision to drop Flight 482 c. The baggage loading and flight preparation expense is an allocation of ground crew's salaries and depreciation of ground equipment. Dropping Flight 482 would have no effect on the company's total baggage loading and flight preparation expenses. d. If Flight 482 is dropped, Pegasus Airlines has no authorization at present to replace it with another flight e. Depreciation of aircraft 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 fleet or the number of flight crew on its payroll