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: 100.0% 7.4 92.6% Ticket revenue (175 seats x 4x occupancy $230 ticket price) 516,100 Variable expenses (517.00 per person) 1.190 Contribution margin 14,910 Flight expenses: Salaries, flight crew $ 1,600 Flight promotion sa Depreciation of aircraft 1,650 Fuel for aircraft 5,600 Liability Insurance 5,100 Salaries, fait assistants 1,300 Bagage loading and light preparation 1,900 Overnight costs for flight crew and assistants at destination 800 Total flight expenses 25.250 liet operating loss $3,140) The following additional information is available about flight 482 aMembers of the flight crew are paid fixed annual salaries whereas the fight assistants are paid based on the number of round Iris they complete b. One-third of the ability insurance is a special charge assessed against flight 482 because in the opinion of the insurance company, the destination of the flight in a high-risk area The remaining two-thirds would be unaffected by decision to drop flight 482 a. 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 b. 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 c 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 d. If 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 1. 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