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Product Costing and Decision Analysis for a Service Company Blue Star Airline provides passenger airline service, using small jets. The airline connects four major cities: Charlotte, Pittsburgh, Detroit, and San Francisco. The company expec The following costs are budgeted for a month: Fuel Ground personnel $2,120,000 788,500 850,000 Crew salaries Depreciation 430,000 Total costs $4,188,500 Blue Star management wishes to assign these costs to individual flights in order to gauge the profitability of its service offerings. The following activity bases were identified with the bu Airline Cost Activity as Fuel, crew, and depreciation costs Ground personnel Number of miles flown Number of arrivals and departures at an airport The size of the company's ground operation in each city is determined by the size of the workforce. The following monthly data are available from corporate records for each terminal operate Ground Personnel Cost $256.000 Number of Arrivals/Departures Terminal City Charlotte Pittsburgh 130 97.500 129.000 San Francisco 306,000 575,500 TO (previa Miles Flown Passengers Passenger 2.000 Flight 101 Flight 102 Flight 103 Description Charlotte to San Francisco Detroit to Charlotte Charlotte to Pittsburgh $695.00 441.50 382.00 Required: 1. Determine the fuel, crew, and depreciation cost per mile down. per mile 2. Determine the cost per arrival or departure by terminal Charlotte Pittsburgh Detroit San Francisco report for the t ightsEach int e rval and departure to its origin and destination atya Enter 3. Use the information (1) and (2) to construct a po except for a negative income from certion Blue Star Airline Fight Probability Report For Three Reg P er revenge conco Gondo