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Profits have been decressing for several yeors at Pegasus Aulines in an effort to impecon the compomys performance, corbuderation is being given to dropping several

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Profits have been decressing for several yeors at Pegasus Aulines in an effort to impecon the compomys performance, corbuderation is being given to dropping several fights thst appear to bo unprofitable A typical intome statement for one such night iright 482 if follows The followng add ionot information 5 avaibble about fight A82 a Members of the fight crew we paid fived annual solaries, whereas the fight attendants are poid by the fight b. One-tird of the tishecy insurance is a special chargs assesspd aganst Fight 482 bechuse, in the coinion of the insurance c. The buggege fouding and fight preparation experse is an elocation of ground crews salaries and depreciation of ground e. Depieciabon of arcati is due entiely to obsolescence. Depieciation due to wear and sear k negligble peytolit Required: Required: 1. Prepare an onaysis showing what impact droppong fught 482 woulu have on the axine's orofits (Do not found intermediate 1. Piepare on anabis shoning celculations. Negetive emounts should be indicated with a minus sign') The following additional information is avalable aboun Flight 482 a Meribers of the figh crew are poid fixed annual solaries, whereas the fight attendants are paid by the fight b. One third of the liability insurcnce is a special charge assessed against Fight 48 ? because, in the opinion of the insurance compacy, the destination is in a high risk erea. The remaining two thards would be unaffected by a decision to drop Flight 482 c. The baggege loading and fight preparation expense is an olocotoca of ground crews solaries and deprectation of ground oquipment. Dropping Fight 482 would heve no effect on the companys total baggage losing and fight preparabon expenses: d. If Fight 482 is dropped, Pegasis Autines has no outhorisation at present to reglace it with another flighte, e. Depieciation of arcrof is due entivey to obsolescence Depreciution duo to weat and lear is negligitile t Diopoing Flight 482 would not allow Fogasus Airlnes to feduce the number of aircrah in its feet or the number of fight crew on its poytoll Pequired: 1. Prepare an andysis showng what impoct dropping Fight 482 would have on the avine's profits. (Do not round intermediate 2. This part of the question is not part of your Cornect asstgoment

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