Profits have been decreasing for several years at Pegasus Airlines. In an effort to improve the company's performance, consideration is being given to 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 (110 seats x 40% $2,640 100% occupancy $60 ticket price) Variable expenses ($10.00 per person) 440 16.7 Contribution margirn 2,200 83.3% Flight expenses: Salaries, flight crevw Flight promotion Depreciation of aircraft Fuel for aircraft Liability insurance Salaries, flight assistants Baggage loading and flight preparation Overnight costs for flight crew and assistants at destination $ 340 710 520 200 240 680 185 70 2,945 $ (745) Total flight expenses Net operating loss