In an effort to increase profits, Pegasus Airlines is thinking about dropping several flights that appear to be unprofitable.

A typical income statement for one round$-$trip of one such flight $($flight $482)$ is as follows:

Ticket revenue $(185$ seats $\backslash$times $40\%$ occupancy $\backslash$times $$210$ ticket price$)$ $ $15,540100\mathrm{.}0\%$

Variable expenses $($$$18\mathrm{.}00$ per person$)1,3328\mathrm{.}6$

Contribution margin $14,20891\mathrm{.}4\%$

Flight expenses:

Salaries, flight crew $ $1,500$

Flight promotion $770$

Depreciation of aircraft $1,750$

Fuel for aircraft $5,900$

Liability insurance $5,400$

Salaries, flight assistants $1,400$

Baggage loading and flight preparation $1,900$

Overnight costs for flight crew and assistants at destination $600$

Total flight expenses $19,220$

Net operating loss $ $(5,012)$

The following additional information is available about flight $482$:

Members of the flight crew are paid fixed annual salaries, whereas the flight assistants are paid based on the number of round trips they complete.

One$-$third of the liability insurance is a special charge assessed against flight $482$ because, in the opinion of the insurance company, the destination of the flight is in a $$high$-$risk$$ area. The remaining two$-$thirds would be unaffected by a decision to drop flight $482.$

The baggage loading and flight preparation expense is an allocation of ground crews$$ salaries and depreciation of ground equipment. Dropping flight $482$ would have no effect on these expenses.

If flight $482$ is dropped, Pegasus Airlines will not replace it with another flight.

Wear and tear on the aircraft caused by this flight is negligible.

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.