Freeflight Airlines is presently operating at 70 percent of capacity. Management of the airline is considering dropping Freeflight's routes between Europe and the United States. If these routes are dropped, the revenue associated with the routes would be lost and the related variable costs saved. In addition, the company's total fixed costs would be reduced by 20 percent. Segmented income statements for a typical month appear as follows (all amounts in millions of dollars): Routes Sales Within U.S. $ 3.20 Variable costs 1.23 Fixed costs allocated to routes 1.68 Within Europe $ 2.73 0.92 1.22 Between U.S. and Europe $ 2.78 1.72 1.32 Operating profit (loss) $ 0.29 $ 0.59 $(0.26) Required: a. Prepare a differential cost schedule. (Enter your answers in millions rounded to 2 decimal places.) Difference (all Revenue Less: Variable costs Contribution margin Less: Fixed costs Operating profit (loss) Status Quo Alternative: Drop U.S. to Europe lower under the alternative) b. Should Freeflight drop the routes between Europe and the United States? Yes No