Saved Profits have been decreasing for several years at Pegasus Airlines. In an effort to improve the company's performance, the co 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 revenue (165 seats x 40% occupancy * $228 ticket price) $14,520 100.0% Variable expenses ($19.00 per person) 1,254 8.6 Contribution margin 13,266 91.4% Flight expenses: Salaries, flight crew $ 1,600 Flight promotion Depreciation of aircraft Fuel for aircraft Liability insurance Salaries, flight assistants Baggage loading and flight preparation 1,900 Overnight costs for flight crew and assistants at destination Total flight expenses Tiet operating loss $(4,914) 780 1,700 5,700 4,500 1,400 600 18,180 The following additional information is available about fight 482: a. Members of the flight crew are paid tored annual salaries, whereas the flight assistants are paid based on the number of round trips they complete One-third of the ability insurance is a special charge assessed against fight 482 because in the opinion of the insurance company the destination of the flight is in a "high-risk area. The remaining two-thirds would be unaffected by a decision to drop flight 482 C. The baggage loading and tight preparation expense is an allocation of ground crews' salaries and depreciation of ground equipment Dropping flight 482 would have no effect on the company's total baggage loading and fight preparation expenses d night 482 is dropped, Pegasus Airlines has no authorization at present to replace it with another fight e. Alterat depreciation is due entirely to obsolescence Depreciation due to wear and tear is negligible Dropping Night 482 would not allow Pegasus Airlines to reduce the number of aircraft in its fleet or the number of fight crew on its payroll Required 1 What is the financial advantage disadvantages of discontinuing flight 482