Zachary Airlines is a small airline that occasionally carries overload shipments for the overnight delivery company Never-Fail, ncorporated. 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-Fail has more freight than it can deliver, it pays Zachary to carry the excess. Zachary contracts with independent pilots to fly its planes on a per-trip basis. Zachary recently purchased an airplane that cost the company $4,883,000. The plane has an estimated useful life of 25,700,000 miles and a zero salvage value. During the first week in January, Zachary flew two trips. The first trip was a round trip flight from Chicago to San Francisco, for which Zachary paid $300 for the pilot and $250 for fuel. The second flight was a round trip from Chicago to New York. For this trip, it paid $250 for the pilot and $125 for fuel. The round trip between Chicago and San Francisco is approximately 4,000 miles and the round trip between Chicago and New York is 1,300 miles. Required a. 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.
Zachary Airlines is a small airline that occasionally carries overload shipments for the overnight delivery company Never-Fail, ncorporated. 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-Fail has more freight than it can deliver, it pays Zachary to carry the excess. Zachary contracts with independent pilots to fly its planes on a per-trip basis. Zachary recently purchased an airplane that cost the company $4,883,000. The plane has an estimated useful life of 25,700,000 miles and a zero salvage value. During the first week in January, Zachary flew two trips. The first trip was a round trip flight from Chicago to San Francisco, for which Zachary paid $300 for the pilot and $250 for fuel. The second flight was a round trip from Chicago to New York. For this trip, it paid $250 for the pilot and $125 for fuel. The round trip between Chicago and San Francisco is approximately 4,000 miles and the round trip between Chicago and New York is 1,300 miles. Required a. 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Zachary 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 accounting
course. The company's motto is "We Never-Fail to Deliver Your Package on Time." When Never-Fail has more freight than it can
deliver, it pays Zachary to carry the excess. Zachary contracts with independent pilots to fly its planes on a per-trip basis. Zachary
recently purchased an airplane that cost the company $4,883,000. The plane has an estimated useful life of 25,700,000 miles and a
zero salvage value. During the first week in January, Zachary flew two trips. The first trip was a round trip flight from Chicago to San
Francisco, for which Zachary paid $300 for the pilot and $250 for fuel. The second flight was a round trip from Chicago to New York.
For this trip, it paid $250 for the pilot and $125 for fuel. The round trip between Chicago and San Francisco is approximately 4,000
miles and the round trip between Chicago and New York is 1,300 miles.
Required
a. 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 B
Required B
Determine the total
Note: Do not round intermediate calculations.
Total cost
Chicago to San
Francisco
trip.
Chicago to
New York
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