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 flight (flight 482) is as follows: Ticket revenue (165 seats x 40% occupancy $230 ticket price) Variable expenses ($19.00 per person) Contribution margin Flight expenses: Salaries, flight crew Flight promotion Depreciation of aircraft Fuel for aircraft Liability insurance Salaries, flight assistants $15,180 100.0% 1,254 13,926 91.75 $1,600 750 1,800 5,600 5,100 1,400 1,850 Baggage loading and flight preparation Overnight costs for flight crew and assistants at destination Total flight expenses Net operating loss 18,600 $(4,674) The following additional information is available about flight 482: