Tofits have been decreasing for several years at Pegasus Airlines. In an effort to improve the company's performance, the company is hinking obout dropping several fights that appear to be unprofitable. A typical income stotement for one round-trip of one such fight (fight 482 ) is as follows: The following additional information is available about fight 482 a. Members of the fight crew are paid fored annual salaties, whereas the fight assistants are paid based on the number of round trips 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 flight is in a "high-risk" area. The remaining two-thirds would be unaffected by a decision to drop flight 482 . c. The boggage losding and fight preparation expense is an alocation of ground crews' salaries and deprecistion of ground equipment. Dropping flight 482 would have no effect on the company's total boggoge loading and flight preparation expenses d. If fight 482 is dropped, Pegasus Airlines has no authorization at present to replace it with another fight. e. Aircraft depreciation is due entirely to obsolescence. Depreciation due to wear and tear is negligible. 1. Dropping fight 482 would not allow Pegasus Aitlines to reduce the number of aircraf in its fleet or the number of fight crew on its payroll