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Stuart Airlines is a small airline that occasionally carries overload shipments for the overnight delivery company Never-Fail, Inc. Never- Fall is a multimillion-dollar company
Stuart Airlines is a small airline that occasionally carries overload shipments for the overnight delivery company Never-Fail, Inc. Never- Fall is a multimillion-dollar company started by Wes Never Immediately after he failed to finish his first accounting course. The company's motto is "We Never-Fail to Deliver Your Package on Time," When Never-Fail has more freight than it can deliver, it pays Stuart to carry the excess. Stuart contracts with independent pilots to fly its planes on a per-trip basis. Stuart recently purchased an airplane that cost the company $5.140,000. The plane has an estimated useful life of 25,700,000 miles and a zero salvage value. During the first week in January, Stuart flew two trips. The first trip was a round trip flight from Chicago to San Francisco, for which Stuart paid $260 for the pilot and $210 for fuel. The second flight was a round trip from Chicago to New York. For this trip, it paid $210 for the pilot and $105 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 1,200 miles. Required 4 a. Select if the costs mentioned below are direct or indirect. b. Determine the total cost of each trip.
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