Problem 4-19A Cost allocation in a service industry Airlines is a small airline that occasionally carries overload shipments for the oy Wes Never imm company Never-Fail, Inc. Never-Fail is a multimillion-dollar company started by Wes Nagh de motto is "We Never- r he failed to finish his first accounting course. The company't Deliver Your Package on Time" When Never-Fail has more freight than it can deliver, it to carry the excess. Eagle contracts with independent pilots to fly its planes on a per-trin ays recently purchased an airplane that cost the company $6,000,000. The plane has an esti life of 20,000,000 miles and a zero salvage value. During the first week in January, Eagle fle trips. The first trip was a round trip flight from Chicago to San Francisco, for which Eagle noia for the pilot and $500 for fuel. The second flight was a round trip from Chicago to New York Eo trip, it paid $300 for the pilot and $300 for fuel. The round trip between Chicago and San Franci approximately 4,400 miles and the round trip between Chicago and New York is 1,600 miles. Required a. Identify the direct and indirect costs that Eagle incurs for each trip. b. Determine the total cost of each trip. c. In addition to depreciation, identify three other indirect costs that may need to be alloca determine the cost of each trip