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% 7.3 92.7% Ticket revenue (165 seats x 40% occupancy x $220 ticket price) $14,520 Variable expenses ($16.00 per person) 1,056 Contribution margin 13,464 Flight expenses: Salaries, Flight crew $ 1,700 Flight promotion 760 Depreciation of aircraft 1,650 Fuel for aircraft 5,700 Liability insurance 5,100 Salaries, flight assistants 1,400 Baggage loading and flight preparation 1,850 Overnight costs for flight crew and assistants at destination 500 Total flight expenses 18,660 Net operating loss $(5,196) The following additional information is available about flight 482 0. Members of the flight crew are paid fixed annual salaries, whereas the light 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 fight preparation expense is an allocation of ground crews colories and depreciation of ground equipment Dropping flight 482 would have no effect on the company's total baggage loading and fight preparation expenses dif 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 Dropping flight 482 would not allow Pegasus Airlines to reduce the number of aircraft in its fleet or the number of night crew on its payroll Required: 1 What is the financial advantage (disadvantage) of discontinuing Night 482