Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Three recent representative flights have been selected for the profitability study. Their characteristics are as follows: Number of Ticket Price per Flight # Travel Miles

image text in transcribed

image text in transcribedimage text in transcribed
Three recent representative flights have been selected for the profitability study. Their characteristics are as follows: Number of Ticket Price per Flight # Travel Miles Flown Passengers Passenger Columbia to 101 2250 80 $750.00 Sacramento Duluth to 102 2000 50 $700.00 Sacramento Columbia to 103 500 40 $405.00 Youngstown INSTRUCTIONS: Using formulas/functions everywhere possible, complete the following. 1. Determine the fuel, crew and depreciation cost per mile. 2. Determine the cost per arrival or departure by terminal city. 3. Use the information in Steps 1 and 2 to construct a profitability report for these three flights. Each flight has a single arrival and departure to its origin and destination city pairs.EXCEL 2 Product Costing and Decision Analysis for a Service Company Speedy Airlines provides commercial airline service, carrying passengers through the use of small jets. The airline connects four major cities: Columbia, Youngstown, Duluth, and Sacramento. The company expects to fly 180,000 miles during a month. The following costs are budgeted for a month. Fuel $2,350,000 Ground personnel $800,000 Crew salaries $750,000 Depreciation $450,000 Total Cost $4,350,000 Speedy's management wishes to assign 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: Airline Cost Activity Base Fuel, crew and depreciation costs Number of miles flown Number of arrivals and departures at an Ground personnel 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 Number of Terminal City Cost Arrivals/ Departures Columbia $260,000 300 Youngstown $100,000 125 Duluth $135,000 150 Sacramento $305,000 325 Total $800,000 900

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

Step: 3

blur-text-image

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

Advanced Accounting

Authors: Debra C. Jeter, Paul K. Chaney

7th edition

1119373204, 9781119373254 , 978-1119373209

More Books

Students also viewed these Accounting questions

Question

Where do your students find employment?

Answered: 1 week ago