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 (105 seats x 40% occupancy x $75 ticket price) Variable expenses ($11.00 per person $3,150 462 14.7 100% 2,688 853% Contribution margin Flight expenses Salaries, flight crew Flight promotion Depreciation of aircraft Fuel for aircraft Liability insurance Salaries, flight assistants Baggage loading and flight $ 320 690 510 155 300 700 180 preparation Overnight costs for flight crew and assistants at destination 60 2,915 $(227) Total flight expenses Net operating loss