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Product Couting and Decision Analysis for a Service Company Blue Star Airline provides passenger airline service, using small jets. The airline connects four major cities

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Product Couting 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 expects to y 170,000 miles during a month. The following costs are budgeted for a month: Fuel Ground personnel Crew Salanes $2,120,000 788,500 850,000 430,000 Deprecation Total costs $4,188,500 Blue Star management wishes to sign these costs to individual flights in order to gauge the profitability of its service offerings. The following activity bases were identified with the budgeted costs: Activity Base Airline Cost Foel, crew, and depreciation costs Number of miles flown Ground personnel 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 operation Ground Personnel Cost Terminal City Number of Arrivals/Departures 320 Charlotte $256,000 97.500 129.000 Pittsburgh Detroit 130 150 Ground Personnel Terminal City Cost Number of Arrivals/Departures 320 Charlotte $256,000 97,500 130 Pittsburgh Detroit San Francisco 150 129,000 306,000 $788,500 340 Total 940 Three recent representative flights have been selected for the profitability study. Their characteristics are as follows: Miles Flown Number of Passengers 80 2,000 Flight 101 Flight 102 Flight 103 Description Charlotte to San Francisco Detroit to Charlotte Charlotte to Pittsburgh Ticket Price per Passenger $695.00 441.50 382.00 800 50 400 20 Required: 1. Determine the fuel, crew, and depreciation cost per mile flown. per mile 2. Determine the cost per arrival or departure by terminal city. Charlotte Pittsburgh Detroit bol San Francisco Flight 103 Charlotte to Pittsburgh 400 20 382.00 Required: 1. Determine the fuel, crew, and depreciation cost per mile flown. per mile 2. Determine the cost per arrival or departure by terminal city Charlotte Pittsburgh Detroit San Francisco 3. Use the information in (1) and (2) to construct a profitability report for the three flights. Each flight has a single arrival and departure to its origin and destination city pairs Blue Star Airline Flight Profitability Report For Three Representative Flights Flight 101 Flight 102 Flight 103 Passenger revenue Fuel, crew, and depreciation costs Ground personnel pood Total costs UBE Flight operating income (los)

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