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 fiight (flight 482 ) is as follows: The following additional information is avallable about flight 482 : a. Members of the flight crew are paid fixed annual salaries, whereas the filght assistants are paid based on the number of round trips they complete. b. One-third of the liablilty insurance is a special charge assessed against fight 482 because in the opinion of the insurance company. the destination of the flight is in o "high-risk" aree. The remaining two-thirds would be unaffected by a decision to drop fight 482 . c. The baggage loading and fight 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 baggoge loading and flight preparation expenses. d. If fight 482 is dropped, Pegasus Airines has no authorization at present to replace it with another fight. e. Aircraft depreciation is due entirely to obsolescence. Depreciation due to wear and tear is negligible. f. Dropping fight 482 would not allow Pegasus Airines to reduce the number of aircraft in its feet of the number of fight crew on its payroil. Required: 1. What is the financial advantage (disadvantage) of discontinuing flight 482