Thornton Airlines is a small airline that occasionally carries overload shipments for the overnight delivery company Never-Fail,Incorporated. Never-Fail is a multimillion-dollar company started by Wes Never immediately after he failed to finish his first accountingcourse. The company's motto is "We Never-Fail to Deliver Your Package on Time." When Never-Fail has more freight than it candeliver, it pays Thornton to carry the excess. Thornton contracts with independent pilots to fly its planes on a per-trip basis. Thorntonrecently purchased an airplane that cost the company $5,632,000. The plane has an estimated useful life of 25,600,000 miles and azero salvage value. During the first week in January, Thornton flew two trips. The first trip was a round trip flight from Chicago to SanFrancisco, for which Thornton paid $310 for the pilot and $260 for fuel. The second flight was a round trip from Chicago to New York.For this trip, it paid $260 for the pilot and $130 for fuel. The round trip between Chicago and San Francisco is approximately 5,000miles and the round trip between Chicago and New York is 1,800 miles.Requireda. Select if the costs mentioned below are direct or indirect.b. Determine the total cost of each trip.Complete this question by entering your answers in the tabs below.Required ASelect if the costs mentioned below are direct or indirect.PilotFuelRequired BDepreciation Thornton Airlines is a small airline that occasionally carries overload shipments for the overnight delivery company Never-Fail,Incorporated. Never-Fail is a multimillion-dollar company started by Wes Never immediately after he failed to finish his first accountingcourse. The company's motto is "We Never-Fail to Deliver Your Package on Time." When Never-Fail has more freight than it candeliver, it pays Thornton to carry the excess. Thornton contracts with independent pilots to fly its planes on a per-trip basis. Thorntonrecently purchased an airplane that cost the company $5,632,000. The plane has an estimated useful life of 25,600,000 miles and azero salvage value. During the first week in January, Thornton flew two trips. The first trip was a round trip flight from Chicago to SanFrancisco, for which Thornton paid $310 for the pilot and $260 for fuel. The second flight was a round trip from Chicago to New York.For this trip, it paid $260 for the pilot and $130 for fuel. The round trip between Chicago and San Francisco is approximately 5,000miles and the round trip between Chicago and New York is 1,800 miles.Requireda. Select if the costs mentioned below are direct or indirect.b. Determine the total cost of each trip.Complete this question by entering your answers in the tabs below.Required A Required BDetermine the total cost of each trip.Note: Do not round intermediate calculations.Total costChicago to SanFranciscoChicago toNew York

Answered: $5,632,000. The plane has an estimated…

$5,632,000. The plane has an estimated us hornton flew two trips. The first trip was a rou nd $260 for fuel. The second flight was a rou The round trip between Chicago and San F rk is 1,800 miles.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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