Profits have been decreasing for several years at Pegasus Airlines. In an effort to impro is being given to dropping several flights that appear to be unprofitable. A typical income statement for one such flight (Flight 482) follows: $42 Ticket revenue (175 seats x 80% occupancy x $300 ticket price) Less: Variable expenses ($24 per person) B 38 Contribution margin Less: Flight expenses: Salaries, flight crew Flight promotion Depreciation of aircraft Fuel for aircraft Liability insurance Salaries, flight attendants Baggage loading and flight preparation Overnight costs for flight crew and attendants at destination Total flight expenses Net operating loss 5 2 4, 20, 12, 1,4 5,6 51,5 $ (12,9