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 fights that appear to be unprofitable. A typical income statement for one round-trip of one such flight (flight 482 ) is as follows: The following additional information is available about fight 482 a. Members of the flight crew are paid fixed annual salacies, whereas the tight assistants are paid bosed on the number of round trips they complete. b. Orie-therd of the liability insurance is a special charge assessed ogainst flight 482 because in the opinion of the insurance company. the destination of the fight is in a "high-risk" atea. The remaining two-thirds would be uraffected by a decision to drop fight 482 c. The baggage loading ond flught prepatation expense is an allocation of ground crews' salaries and depreciation of ground equpment. Dropping flight 482 would have no effect on the company's total boggage loading and flight preparation expenses. d. If flight 482 is diopped, Pepasus Airlines has no authorization at present to replace if with another flight. e. Arcraft depreciation is due entirely to obsovescence. Depreciation due to wear and tear is negligible. f. Dropping fight 482 would not allow Pegasus Airtines to reduce the number of aircraft in its tleet or the number of fight crew on its h payrolily