Profits have been decieasing for several years at Pegasus Airines. In an effort to impiove the company's performance, the company is thinking about dropping several fights that appear to be unprofitable A typicat income statement for one round trip of one such night (fight 482 is as follows: The following additional information is avallable about flight 482 : a. Members of the flight crew are paid fiked annual salaries, whereas the ftight assistants are paid based on the number of round trips they complete b. One-third of the lability insurance is a speclal charge assessed against fight 482 because in the opinion of the insurance company. the destination or the fight is in a "high-risk' area. The remaining two thirds would be unaffected by a decision to drop fight 482 . c. The baggage loading and-night preparation expense is an alocation of ground crews' salaries and depreciation of ground equipment. Dropping fight 482 would have no effect on the company's total baggage loading and flight preparation expenses. d. If flight 482 is dropped. Pegasus Alrines has no authorization at present to replace it with another fight. e. Arcraft depreciation is due entirely to obsolescence. Depreciation due to wear and tear is negigible. f. Dropping fight 482 would not allow Pegasus Aurlines to reduce the number of aircraft in its fleet or the number of fight crew on its. payroll Required