Question
Campbell 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
Campbell 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 companys motto is We Never-Fail to Deliver Your Package on Time. When Never-Fail has more freight than it can deliver, it pays Campbell to carry the excess. Campbell contracts with independent pilots to fly its planes on a per-trip basis. Campbell recently purchased an airplane that cost the company $4,338,000. The plane has an estimated useful life of 24,100,000 miles and a zero salvage value. During the first week in January, Campbell flew two trips. The first trip was a round-trip flight from Chicago to San Francisco, for which Campbell paid $350 for the pilot and $300 for fuel. The second flight was a round trip from Chicago to New York. For this trip, it paid $300 for the pilot and $150 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 1,200 miles. Required
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Select if the costs mentioned below are direct or indirect.
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Determine the total cost of each trip.
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