Profits have been decreasing for several years at Fly with Us $($FWU$)$ 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 such flight $($Flight $401)$ follows:

$100\mathrm{.}0\%$

T$$cket revenue $(175$ seats Be$\%$ occupancy $$300$ ticket price$)$

$ $42,000$

$8\mathrm{.}0$

Less: Variable expenses $($$$24$ per person$)$

$3,360$

$92\mathrm{.}0\%$

Contribution margin

$38,640$

Less: Flight expenses:

$5,250$

Salaries, flight crew

$2,100$

Flight promotion

$4,200$

Depreciation of aircraft

$20,100$

eBook

Fuel for aircraft

$12,600$

$1,450$

Liability Insurance

Salaries, flight attendants

$5,050$

$840$

$51\mathrm{.}590$

Baggage loading and flight preparation

Overnight costs for flight crew and attendants at destination

Total flight expenses Net operating loss

S$(12,950)$

The following additional information is available about Flight $401$

a$.$ Members of the flight crew are paid fixed annual salaries, whereas the flight attendants are paid by the flight b$.$ One$-$third of the liability insurance is a special charge assessed against Flight $401$ because, in the opinion of the insurance company,

the destination is in a high$-$risk area. The remaining two$-$thirds would be unaffected by a decision to drop Flight $401,$ c$.$ The baggage loading and flight preparation expense is an allocation of ground crew's salaries and depreciation of ground equipment. Dropping Flight $401$ would have no effect on the company's total baggage loading and flight preparation expenses, d$.$

If Flight $401$ is dropped, FWU Airlines has no authorization at present to replace it with another flight.

e$.$ Depreciation of aircraft is due entirely to obsolescence. Depreciation due to wear and tear is negligible.

Dropping Flight $401$ would not allow FWU Airlines to reduce the number of aircraft in its fleet or the number of flight crew on its payroll

Required:

$1.$ Prepare an analysis showing what impact dropping Flight $401$ would have on the FWU's profits. $($Do not round intermediate calculations. Negative amounts should be indicated with e minus sign.$)$