Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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
Exhibit 14-4 Flight-Route Decision: Worldwide Airways Revenues and Costs under Two Alternatives (a) (b) (c) Nonstop With Stop in Differential Relevant or Irrelevant Route* San Francisco* Amount: (a) (b) Relevant (1) Passenger revenue $240,000 $258,000 $(18,000) Irrelevant (2) Cargo revenue 80,000 80,000 -0 Relevant (3) Landing fee in San Francisco -O (5,000) 5,000 Relevant (4) Use of airport gate facilities -0 (3,000) 3,000 Relevant (5) Flight crew cost (2,000) (2,500) 500 Relevant (6) Fuel (21,000) (24,000) 3,000 Relevant (7) Meals and services (4,000) (4,600) 600 Irrelevant (8) Aircraft maintenance (1,000) (1,000) -0 Total revenue less costs $292,000 $297,900 $ (5,900) osts *In columns (a) and (b), parentheses denote costs and numbers without parentheses are revenues. fIn column (c), parentheses denote differential items favoring option (b)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Mcgraw Hills Homework Manager Access Code To Accompany Introduction To Managerial Accounting

Authors: Peter Brewer, Ray Garrison, Eric Noreen

3rd Edition

0073264938, 978-0073264936

More Books

Students also viewed these Accounting questions