M Inbox - information@evolvix PD Madison Springs Conference X HST HST Calculator / Harmonize X D2L McGraw-Hill Connect - 22F X Question 3 - Module 10 - C X Course Hero X + X C https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252F... A Q Sign in . . . Module 10 - Chapter 9 Saved Help Save & Exit Submit Check my work 3 Profits have been decreasing for several years at Pegasus Airlines. In an effort to improve the company's performance, consideration s being given to dropping several flights that appear to be unprofitable. 10 A typical income statement for one such flight (Flight 482) follows: O points Ticket revenue (175 seats x 80% occupancy * $600 ticket price) $ 84, 000 100.0% + Less: Variable expenses ($48 per person) 6,720 8.0 Contribution margin 77 , 280 92.0% Book Less: Flight expenses: Salaries, flight crew 10,500 Flight promotion 4, 200 Depreciation of aircraft 3,400 Print Fuel for aircraft 10, 300 Liability insurance 25, 200 Salaries, flight attendants 2,900 Baggage loading and flight preparation 10, 100 References Overnight costs for flight crew and attendants at destination 1 , 680 Total flight expenses 103, 280 Net operating loss $ (26, 000) 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. Required: 1. Prepare an analysis showing what impact dropping Flight 482 would have on the airline's profits. (Do not round intermediate calculations. Negative amounts should be indicated with a minus sign.) Flight costs that can be avoided if the flight is discontinued ED Mc Hill Type here to search O EN 01 4X ENG 5:04 PM 0'C Cloudy 11/16/2022M Inbox - information@evolvix p Madison Springs Conference X HST HST Calculator / Harmonize X D2L McGraw-Hill Connect - 22F X Question 3 - Module 10 - C X Course Hero X + X C https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252F... A Q Sign in . . . Module 10 - Chapter 9 Saved Help Save & Exit Submit Check my work 3 Overnight costs for flight crew and attendants at destination 1, 680 Total flight expenses 103, 280 Net operating loss $ (26, 000) 10 The following additional information is available about Flight 482: O points 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. Book 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. Print 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. References Required: I. Prepare an analysis showing what impact dropping Flight 482 would have on the airline's profits. (Do not round intermediate calculations. Negative amounts should be indicated with a minus sign.) Flight costs that can be avoided if the flight is discontinued: S 2. This part of the question is not part of your Connect assignment Mc Hill Type here to search O EN 5:04 PM 0'C Cloudy A - gX ENG 11/16/2022