Profits have been decreasing for several years at Pegasus Airlines in an effort to improve the company's performance, the company is thinking about dropping several flights that appear to be unprofitable. A typical income statement for one round-trip of one such fight (ight 482) is as follows: $15,11 1.32 13,860 3.7 91.3% Ticket revenue (165 seats des occupancy $230 ticket price) variable expenses (520.ee per person) Contribution margin Flight expenses: Salaries, Flight crew Flight promotion Depreciation of aircraft Fuel for aircraft Liability insurance Salaries, Flight assistants Bagage loading and flipt preparation Overnight costs for flight crew and assistants at destination Total flight expenses wt operating loss 1.ee 5,7ee $(4,5 ) The following additional information is available about flight 482 a. Members of the night crew are paid fixed annual salaries, whereas the flight assistants are paid based on the number of round trips they complete. b. One-third of the liably insurance is a special charge assessed against light 482 because in the opinion of the insurance company. the destination of the flight is in a "high-risk area. The remaining two-thirds would be unaffected by a decision to drop fight 482 The baggage loading and fight preparation expense is an allocation of ground crews' salaries and depreciation of ground equipment Dropping Night 482 would have no effect on the company's total baggage loading and night preparation expenses d. ir flight 482 is dropped, Pegasus Airlines has no authorization at present to replace it with another flight e. Aircraft depreciation is due entirely to obsolescence. Depreciation due to wear and tear is negligible Dropping fight 482 would not allow Pegasus Airlines to reduce the number of aircraft in its fleet or the number of Might crew on its payroll Required: 1. What is the financial advantage (disadvantage of discontinuing flight 482