Profits have been decreasing for several years at Pegasus Airines, In an effort to improve the company's performance, the company is thinking about dropping several fights thet appear to be unprofitable. A typical income statement for one round-trip of one such fight (flight 482 ) is as follows: The following additional information is avaiiable about fight 482 e. Members of the filght erew are paid fixed annusl salaries, whereas the flight assistants are pald based on the number of round trips they complete. b. One-third of the liability insurance is a spocial charge assessed agoinst flight 482 because in the opinion of the insurance company. the destination of the fight 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 crews' salaries and depreciation of ground equipment. Oropping fight 482 would have no effect on the company's total baggage looding and fight preparation expenses d. If flight 482 is dropped, Pegasus Airlines has no authorization at present to replace it with another fight. e. Aurcraft depreciation is due entirely to obsolescence. Depreciation due to wear and tear is negilgible. t Dropping flight 482 would not allow Pegasus Arines to reduce the number of aircraft in its fleet or the number of fight crew on its payroli. Required: 1. What is the financial advantage (disadvantage) of discontinuing fight 482