Profits have been decreasing for several years at Pegasus Airlines in an effort to improve the company's performance, consideration is being given to dropping several flights that appear to be unprofitable A typical income statement for one such flight (Flight 482) follows: $ 33,000 2,640 30, 360 100.0 8.0 92.0 Ticket revenue (150 seats Box occupancy $275 ticket price) Less: Variable expenses ($22 per person) Contribution margin Less Flight expenses Salaries, flight crew Flight promotion Depreciation of aircraft Fuel for aircraft Liability insurance Salades, flight attendants Baggage loading flight preparation Overnight costs for flight crew and attendants at destination Total flight expenses Net operating loss 4,100 1,650 3,300 15,800 9,900 1,150 3,950 660 40,510 $ (10,150) The following additional information is available about Flight 482 a. Members of the flight crew are paid fixed annual salaries, whereas the flight attendants are paid by the flight b. One-third of the liability insurance is a special charge assessed against Flight 482 because, in the opinion of the insurance company, the destinations in a high-riscarea. The remaining two-thirds would be unaffected by a decision to drop Flight 482 c. The baggage loading and light preparation expense is an allocation of ground crew's solotles and depreciation of ground equipment Dropping Flight 482 would have no effect on the company's toto baggage loading and flight preparation expenses dll Flight 482 s dropped. Pegasus Airlines has no authorzation at present to replace it with another flight e Depreciation of aircraftis que entirely to obsolescence Depreciation due to wear and teatis negligible Pre Next equipinen VIUPpug runt 402 Wuuu have no encontre company to taggaye aung anu ngrit preparat d: Flight 482 is dropped, Pegasus Airlines has no authorization at present to replace it with another flight e. Depreciation of aircraft is due entirely to obsolescence. Depreciation due to wear and tear is negligible f. 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. Prepare an analysis showing what impact dropping Flight 482 would have on the airline's profits. (Do not round intermediate calculations. Negative amounts should be indicated with a minus sign.) Fight costs that can be avoided if the flight is discontinued S O 2. This part of the question is not part of your Connect assignment