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 (light 482) is as follows Ticket revenue (175 seats * ex occupancy * $200 ticket price) $14,000 100.ex Variable expenses ($16.00 per person) 1,120 Contribution margin 12,830 92% Flight expenses: Salaries, flight crew $ 1.600 Flight promotion 780 Depreciation of aircraft 1,800 Fuel for aircraft 5,400 Liability insurance 4.300 Salaries, flight assistants 1,200 Baggage loading and flight preparation 1.950 Overnight costs for flight crew and assistants at destination 500 Total flight expenses 18.00 Net operating loss $ 5,150) The following additional information is available about flight 482 The following additional information is available about might 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 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 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 Dropping flight 182 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 4822 Financial advantage Financial (disadvantage)