Please use Excel what-if analysis or solver to solve the problems below.

Problem 1:

Freeflight Airlines is presently operating at 70 percent of capacity. Management of the airline is considering dropping Freeflights routes between Europe and the United States. If these routes are dropped, the revenue associated with the routes would be lost and the related variable costs saved. In addition, the companys total fixed costs would be reduced by 20 percent.

Segmented income statements for a typical month appear as follows.

Routes	Within U.S.		Within Europe		Between U.S. and Europe
Sales	$	3,400,000			$	2,600,000			$	2,800,000
Variable costs		1,400,000				1,000,000				1,500,000
Fixed costs allocated to routes		1,700,000				1,300,000				1,400,000
Operating profit (loss)	$	300,000			$	300,000			$	(100,000	)

Required:

a. To what extent the company can drop its current sales of the routes between Europe and the United States and still want to keep it?

b. Should Freeflight drop the routes between Europe and the United States if the company expects its sales to be $2,500,000? How about $2,200,000?