Question: please help solve the last part Product costing and decision analysis for a service company Bue Star Airline provides passenger airline service, using small jets.


Product costing and decision analysis for a service company Bue Star Airline provides passenger airline service, using small jets. The airline connects four major citios: Charlotte, Pittsburgh, Detroit, and San Francisco. The compan expects to fly 170,000 miles during a month, The following costs are budgeted for a month: Blue Star 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: 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: 2 more Check My Work uses remaining. Three recent representative fights have been selected for the profitability study. Their characteristics are as follows: Requiredt 1. Determine the fuel, crew, and depreciation cost per mile flown. per mile 2. Determine the cost per arrival or departure by terminal city. 2 more Check My Work uses femaining T Check My Work 1. Calculate total costs for fuel, crew and depreciation: Divide total costs by monthly miles flown to arrive at a rate. 2. Calculate cost per arrival or departure for each terminal city: Monthly Ground Personnel Costs Number of Arrivals/Departures = Rate per City 3. Use the information in (1) and (2) to construct a profitability report for the three flights. Each flight has a singl pairs, 2 more Check My Work uses remaining
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