Question
Rundle Airlines is a small airline that occasionally carries overload shipments for the overnight delivery company Never-Fail, Inc. Never-Fail is a multimillion-dollar company started by
Rundle Airlines is a small airline that occasionally carries overload shipments for the overnight delivery company Never-Fail, Inc. Never-Fail is a multimillion-dollar company started by Wes Never immediately after he failed to finish his first accounting course. The companys motto is We Never-Fail to Deliver Your Package on Time. When Never-Fail has more freight than it can deliver, it pays Rundle to carry the excess. Rundle contracts with independent pilots to fly its planes on a per-trip basis. Rundle recently purchased an airplane that cost the company $4,864,000. The plane has an estimated useful life of 25,600,000 miles and a zero salvage value. During the first week in January, Rundle flew two trips. The first trip was a round-trip flight from Chicago to San Francisco, for which Rundle paid $350 for the pilot and $300 for fuel. The second flight was a round trip from Chicago to New York. For this trip, it paid $300 for the pilot and $150 for fuel. The round trip between Chicago and San Francisco is approximately 4,500 miles and the round trip between Chicago and New York is 1,800 miles.
Required
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Select if the costs mentioned below are direct or indirect.
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Determine the total cost of each trip.
Required
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Select if the costs mentioned below are direct or indirect.
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Determine the total cost of each trip.
Complete this question by entering your answers in the tabs below.
Select if the costs mentioned below are direct or indirect.
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Complete this question by entering your answers in the tabs below.
- Required A
- Required B
Select if the costs mentioned below are direct or indirect.
TOTAL COST CHICAGO TO SF and CHICAGO TO NY
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