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 (105 seats x 40% occupancy x $65 ticket price) Variable expenses ($12.00 per person) Contribution margin Flight expenses: $2,730 504 100.0% 18.5 81 . 5% 2,226 Salaries, flight crew Flight promotion Depreciation of aircraft Fuel for aircraft Liability insurance Salaries, flight assistants Baggage loading and Overnight costs for flight crew and $ 390 720 450 175 180 710 200 flight preparation 60 2, 885 $ (659) assistants at destination Total flight expenses Net operating loss The following additional information is available about flight 48.2 a. Members of the flight crew are paid fixed annual salaries, whereas the flight assistants are paid based on the number of round b. One-third of the liability insurance is a special charge assessed against flight 482 because in the opinion of the insurance trips they complete 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