K ces Vernon Airlines is a small airline that occasionally carries overload shipments for the overnight delivery company

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K Ces Vernon Airlines Is A Small Airline That Occasionally Carries Overload Shipments For The Overnight Delivery Company 1 (167.86 KiB) Viewed 31 times

K ces Vernon 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 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 Vernon to carry the excess. Vernon contracts with independent pilots to fly its planes on a per-trip basis. Vernon recently purchased an airplane that cost the company $5,635,000. The plane has an estimated useful life of 24,500,000 miles and a zero salvage value. During the first week in January, Vernon flew two trips. The first trip was a round trip flight from Chicago to San Francisco, for which Vernon paid $270 for the pilot and $220 for fuel. The second flight was a round trip from Chicago to New York. For this trip, it paid $220 for the pilot and $110 for fuel. The round trip between Chicago and San Francisco is approximately 4,300 miles and the round trip between Chicago and New York is 1,300 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. (Do not round intermediate calculations.) Chicago to San Francisco Chicago to New York Total cost < Required A Required B >