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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

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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 price) $ 2,990 100.0% le expenses ($10.e0 per 460 15.4 2,530 84.6% Contribution margin Flight expenses Salaries, flight crew Flight promotion Depreciation of aircraft Fuel for aircraft 378 720 sse 280 Salaries, flight assistants Baggage loading and flight preparation Overnight costs for flight crew and assistants 7ee 200 at destination Total flight expenses Net operating loss The following additional information is available about flight 482 a. Members of the flight crew are paid fixed annual salaries, whereas the flight assistants are paid based on the number of round trips they complete Prey 1 of 2 Next>

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