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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 (light 482) is as follows: Ticket revenue (180 seats 404 occupancy * $230 ticket price) $ 16,560 100.00 Variable expenses ($19.00 per person) 1,368 8.3 Contribution margin 15,192 91.74 Flight expensesi Salaries, flight crew $1,500 Flight promotion Depreciation of aircraft 1.650 Fuel for aircraft 5,800 Liability Insurance Salaries, flight assistants 1,500 Baggage loading and flight preparation 1,900 Overnight costs for flight crew and assistants at destination Total flight expenses 18,520 Net operating loss $ (3,328) 770 4,800 680 The following additional information is available about flight 482 a. 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 b. 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 c. The baggage loading and flight preparation expense is an allocation of ground crews' solaries and depreciation of ground equipment. Dropping flight 482 would have no effect on the company's total baggage loading and flight preparation expenses. d. f flight 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 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? Financial (disadvantage)