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Exhibit 14-4 Flight-Route Decision: Worldwide Airways Revenues and Costs under Two Alternatives (a) (c) Differential Amount: (a) - (b) $(18,000) Nonstop Relevant or Irrelevant Route*
Exhibit 14-4 Flight-Route Decision: Worldwide Airways Revenues and Costs under Two Alternatives (a) (c) Differential Amount: (a) - (b) $(18,000) Nonstop Relevant or Irrelevant Route* Relevant (1) Passenger revenue $240,000 Irrelevant (2) Cargo revenue 80,000 Relevant (3) Landing fee in San Francisco -O- Relevant (4) Use of airport gate facilities Relevant (5) Flight crew cost (2,000) Relevant (6) Fuel (21,000) Relevant (7) Meals and services (4,000) Irrelevant (8) Aircraft maintenance (1,000) Total revenue less costs $292.000 (b) With Stop in San Francisco* $258,000 80,000 (5,000) (3,000) (2,500) (24,000) (4.600) (1,000) $297.900 5,000 3,000 500 3,000 600 -0 $ (5.900) *In columns (a) and (b), parentheses denote costs and numbers without parentheses are revenues. fIn column (c), parentheses denote differential items favoring option (b). Refer to Exhibit 14-4 and calculate the total revenue less costs without the irrelevant data. Nonstop Route With Stop In San Francisco Differential Amount Total revenue less costs
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