Chapter 11, Problem 21P

Requirement - 1:

To determine

Continue or Discontinue: For making decision about continuing or discontinuing a flight, we need to know the impact of that flight on the overall profits of the firm. So when overall operating profits are higher in case of continuing a flight then we will continue with the flight or vice versa.

To identify: Financial advantage (disadvantage) of discontinuing flight 482.

Requirement - 2:

To determine

To Explain: Impact of elimination of 10% its’ flight on profits.