Profits have been decreasing for several years at Pegasus Airlines. In an effort to improve the companys 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 (185 seats 40% occupancy $250 ticket price)	$ 18,500	100.0%
Variable expenses ($16.00 per person)	1,184	6.4
Contribution margin	17,316	93.6%
Flight expenses:
Salaries, flight crew	$ 1,700
Flight promotion	790
Depreciation of aircraft	1,550
Fuel for aircraft	5,200
Liability insurance	4,800
Salaries, flight assistants	1,300
Baggage loading and flight preparation	1,700
Overnight costs for flight crew and assistants at destination	500
Total flight expenses	17,540
Net operating loss	$ (224)