Profits have been decreasing for several years at Pegasus Alilines. In an effort to improve the company's performance, the compony is thinking about dropping several filghts that appear to be unprofitable. A typical income statement for one round-trip of one such flight (filght 482 ) is as follows: The following additional information is available about flight 482 : a. Members of the fight crew are paid fixed annual salaries, whereas the flight assistants are paid based on the number of round thips they complete. b. One-third of the liability insurance is a special charge assessed against fight 482 because in the opinion of the insurance company. the destination of the fight is in a "high-fisk" area. The remaining two thitds would be unatfected by a decision to drop flight 482 . c. The baggage loading and flight preparation expense is an allocation of ground crews' salaries and depreciation of ground equipment. Dropping fight 482 would have no effect on the company's total baggage loading and flight preparation expenses: d. If filght 482 is dropped, Pegasus Airlines has no euthorization at present to replace it with another flight. e. Alrcraft depreciation 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 alrcraft in its fleet or the number of flight crew on its payroll. Required: 1. What is the financial advantage (disadvantage) of discontinuing fight 482