80.2K

Verified Solution

Link Copied!

Incorporated. Never$-$Fail 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 Benson to carry the excess. Benson contracts with independent pilots to fly its planes on a per$-$trip basis. Benson

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, Benson flew two trips. The first trip was a round trip flight from Chicago to San

Francisco, for which Benson paid $$290$ for the pilot and $$240$ for fuel. The second flight was a round trip from Chicago to New York.

For this trip, it paid $$240$ for the pilot and $$120$ for fuel. The round trip between Chicago and San Francisco is approximately $4,000$

miles and the round trip between Chicago and New York is $1,500$ miles.

Required

a$.$ Select if the costs mentioned below are direct or indirect.

b$.$ Determine the total cost of each trip.

Complete this question by entering your answers in the tabs below.

Required $A$

Required B

Determine the total cost of each trip.

Note: Do not round intermediate calculations.

Answer & Explanation Solved by verified expert

See Answer