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 $(200$ seats $\backslash$times $40\%$ occupancy $\backslash$times $$200$ ticket price$)$ $ $16,000100\mathrm{.}0\%$

Variable expenses $($$$20\mathrm{.}00$ per person$)1,60010$

Contribution margin $14,40090\%$

Flight expenses:

Salaries, flight crew $ $1,700$

Flight promotion $760$

Depreciation of aircraft $1,800$

Fuel for aircraft $5,800$

Liability insurance $5,400$

Salaries, flight assistants $1,400$

Baggage loading and flight preparation $1,750$

Overnight costs for flight crew and assistants at destination $600$

Total flight expenses $19,210$

Net operating loss $ $(4,810)$

The following additional information is available about flight $482$:

Members of the flight crew are paid fixed annual salaries, whereas the flight assistants are paid based on the number of round trips they complete.

One$-$third of the liability insurance is a special charge assessed against flight $482$ 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 flight $482.$

The baggage loading and flight preparation expense is an allocation of ground crews$$ salaries and depreciation of ground equipment. Dropping flight $482$ would have no effect on the company$$s total baggage loading and flight preparation expenses.

If flight $482$ is dropped, Pegasus Airlines has no authorization at present to replace it with another flight.

Aircraft depreciation is due entirely to obsolescence. Depreciation due to wear and tear is negligible.

Dropping flight $482$ would not allow Pegasus Airlines to reduce the number of aircraft in its fleet or the number of flight crew on its payroll.

Required:

$1.$ What is the financial advantage $($disadvantage$)$ of discontinuing flight $482?$