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: The following additional information is available about Flight 482 : a. Members of the fight crew are paid fixed annual salaries, whereas the flight attendants are pald by the fight. b. One-third of the liability insurance is a special charge assessed against Flight 482 becouse, in the opinion of the insurance company, the destination is in a high risk area. The remaining two-thids would be unaffected by a decision to drop Flight 482. c. The baggage loading and flight preparation expense is an allocation of ground ciew's salaries and depreclation of ground equipment. Dropping Flight 482 would have no effect on the company's total baggage loading and flight preparation expenses. d. If Flight 482 is diopped, 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 teduce the number of alrcraft in its fleet or the number of night crew on its d. If Flight 482 is dropped, Pegasus Airines has no authorization at present to replace it with another flight. e. Depreciation of alrcraft 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 colculations. Negotive amounts should be indicated with a minus sign.)