Finch airlines is a small airline that occasionally carries overload shipments for the overnight delivery company never-fail, Inc. Never-fail is a multimillion- dollar company started by Wes never immediately after he failed to finish his first accounting course. The company's motto is We never-fail to deliver your package on Time. when never-fall has more freight than it can deliver, it pays finch to carry the excess. Finch contracts with independent pilot to fly its planes on a per -trip basis. Finch recently purchased an airplane that cost the company $5,060,000. The plane has an estimated useful life of 25,300,000 miles and zero salvage value. Finch paid $330 for the pilot and $280 for fuel. The second flight was a round trip from Chicago to New York. for this trip, it paid $280 for the pilot and $140 for fuel. The round trip between Chicago and San Francisco is approximately 4100 miles and the round trip between Chicago and new York is 1,500 miles. a) Select if the costs mentioned below are direct or Indirect. b) determine the total cost of each trip. Required B Total cost from Chicago to San Fransico Total cost form Chicago to New York

Practical Management Science
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ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Finch airlines is a small airline that occasionally carries overload shipments for the overnight delivery company never-fail, Inc. Never-fail is a multimillion- dollar company started by Wes never immediately after he failed to finish his first accounting course. The company's motto is We never-fail to deliver your package on Time. when never-fall has more freight than it can deliver, it pays finch to carry the excess. Finch contracts with independent pilot to fly its planes on a per -trip basis. Finch recently purchased an airplane that cost the company $5,060,000. The plane has an estimated useful life of 25,300,000 miles and zero salvage value. Finch paid $330 for the pilot and $280 for fuel. The second flight was a round trip from Chicago to New York. for this trip, it paid $280 for the pilot and $140 for fuel. The round trip between Chicago and San Francisco is approximately 4100 miles and the round trip between Chicago and new York is 1,500 miles.

a) Select if the costs mentioned below are direct or Indirect.

b) determine the total cost of each trip.

Required B

Total cost from Chicago to San Fransico

Total cost form Chicago to New York

 

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