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Convergatioris M ChameMlEx-V n News|DasFrhiaard_ ‘ x .’_’Impeualjewelersircun’. q 260 I. w Problem 12-2I Dropplng or Retalning a Fllgl1t[LOI2-2] Pram…

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Convergatioris M ChameMlEx-V n News|DasFrhiaard_ ‘ x .’_’Impeualjewelersircun’. q 260 I. w Problem 12-2I Dropplng or Retalning a Fllgl1t[LOI2-2] Pram…

Problem 12-21 Dropping or Retaining a Flight [LO12-2]

Profits have been decreasing for several years at Pegasus Airlines. In an effort to improve the company’s performance, consideration is being given to 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:

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