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Business, 24.03.2021 18:30 mirzakasumovic8926

Zachary 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 Zachary to carry the excess. Zachary contracts with independent pilots to fly its planes on a per-trip basis. Zachary recently purchased an airplane that cost the company $4,636,000. The plane has an estimated useful life of 24,400,000 miles and a zero salvage value. During the first week in January, Zachary flew two trips. The first trip was a round trip flight from Chicago to San Francisco, for which Zachary paid $420 for the pilot and $370 for fuel. The second flight was a round trip from Chicago to New York. For this trip, it paid $370 for the pilot and $185 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. (Do not round intermediate calculations.)

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