Given Data:
Ticket revenue:
Seat capacity	175
Occupancy	40%
Ticket price	$ 250
Total ticket revenue		$ 17,500
Variable expenses:
Per person	$ 40.00
Total		2,800
Contribution margin		14,700
Flight expenses:			notes
Salaries, flight crew		3,000	A
Flight promotion		1,500
Depreciation of aircraft		2,500	E
Fuel for aircraft		5,800
Liability insurance		6,000	C
Salaries, flight assistants		2,000	B
Baggage loading and flight preparation		1,700	D
Overnight costs for flight crew at destination	3,000
Total flight expenses		25,500
Operating loss		$ (10,800)
Notes
A Fixed, annual
B Based on number of round trips completed
C One-third a special charge assessed against flight 482; remainder unaffected by a decision to drop flight 482
D An allocation of ground crews' salaries and depreciation of ground equipment
E Due to obsolescence