The following additional information is available about flight 482:

1. Members of the flight crew are paid fixed annual salaries, whereas the flight assistants are paid based on the number of round trips they complete.
2. One-third of the liability insurance is a special charge assessed against flight 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.
3. The baggage loading and flight 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 flight preparation expenses.
4. If flight 482 is dropped, Pegasus Airlines has no authorization at present to replace it with another flight.
5. Aircraft depreciation is due entirely to obsolescence. Depreciation due to wear and tear is negligible.
6. 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. What is the financial advantage (disadvantage) of discontinuing flight 482?

McGraw-Hill Connect X 5 Question 2 - Chapter Thirteen Pr X C Profits Have Been Decreasing For X + X C ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%2530%252F%252FIms.mheducation.com%252Fmghmiddleware%252Fm... To i Apps Ill Appellate Division -.. WAMAP - Math 14... 3 Precalculus C Q:Paparo Corporati... D Mathway | Calculus... (10) Limits and cont.. b trignometry - Bing.. > > Reading list Chapter Thirteen Problems (10 pts.) i Saved Help Save & Exit Submit Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question 2 Profits have been decreasing for several years at Pegasus Airlines. In an effort to improve the company's performance, the company is 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: 3.33 points Ticket revenue (160 seats x 40% occupancy x $220 ticket price) $ 14, 080 100. 0% Variable expenses ($16.00 per person) 1, 024 7.3 Contribution margin 13, 056 92. 7% Flight expenses : Salaries, flight crew $ 1, 600 Flight promotion 770 Depreciation of aircraft 1, 650 Fuel for aircraft 5,800 Liability insurance 4, 800 Salaries, flight assistants 1, 400 Baggage loading and flight preparation 1, 950 Overnight costs for flight crew and assistants at destination 800 Total flight expenses 18,770 Net operating loss $ (5, 714) TH - 1- 11 -. Mc Graw Hill 3:46 PM Type here to search a ~ DE ) ENG 6/15/2021