Problem 12-21 Dropping or Retaining a Flight [LO12-2] Profts have been decreasing for several years at Pegesus Airlines. In an effort to improve the company's performance, the company is Profits 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 (115 seats x 40% $2,760 occupancy $60 ticket price) Variable expenses ($13.00 per person)598_-21.7- Contribution margin Flight expenses: 100.0% 2,162 78.3% Salaries, flight crew Flight promotion Depreciation of aircraft Fuel for aircraft Liability insurance Salaries, flight assistants Baggage loading and flight preparation Overnight costs for flight crew and $ 370 680 520 195 180 730 175 assistants at destination Total flight expense:s Net operating 1oss 70 2, 920 $ (758)