rofits have been decreasing for several years at Pegasus Airlines, In an effort to improve the company's performance, the company is hinking about dropping several flights that appeor to be unprofiable. A typicalincome statement for one round-trip of one such flight (flight 482 ) is as follows: The following addicional informotion is availoble obout fight 482 a. Members of the flight crew are paid foxed onnual salaries, whetess the flight assistants are paid bosed on the number of round trips they complete b. One-third of the liablity insuronce is a special charge assensed ogainst flight 482 becouse in the opinion of the insurance company. the destination of the flight is in o "high-risk" orea. The remaining two-thirds would be unoffected by a decision to drop flight 482. c. The baggoge loading and flight preparotion expense is an allocation of ground crews' solaries and depreciation of ground equipment Oropping flight 482 would have no effect on the company's total baggoge loading and fight preparation expenses. d. if flight 482 is dropped, Pegotus Airlines has no suthonzation at present to replace it with another flight e. Aircrat depreciation is due entrely to obsolescence. Depreciotion due to wear and tear is negigible. f Dropping fight 482 would not allow Pegosus Airlines to reduce the number of oirciaft in its fleet or the number of flight crevi on its payroll Required