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Freeflight Airlines is presently operating at 70 percent of capacity Management of the airl routes between Europe and the United States. If these routes
Freeflight Airlines is presently operating at 70 percent of capacity Management of the airl routes between Europe and the United States. If these routes are dropped, the revenue asso the related variable costs saved. In addition, the company's total fixed costs would be reduced Segmented income statements for a typical month appear as follows (all amounts in millions of Between U.S. Within Routes Sales U.S. Within Europe and Europe #3.20 $2.87 $ 2.92 Variable costs 1.29 1.75 Fixed costs allocated to routes 1.62 1.28 Operating profit (less) $0.29 $2.64 1.38 $(8.21) Required: a. Prepare a differential cost schedule. (Select option "Increase" or "decrease", keeping Sta there is no effect. Enter your answers in millions rounded to 2 decimal places.)
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