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Product Casting and Decision Analysis for a Service Company Blue Star Airline provides passenger airline service, using small jets. The airline connects four major cities: Charlotte, Pittsburgh, Detroit, and San Francisco. The company expects to Hly 170,000 miles during a month. The following costs are budgeted for a month: Fuel Ground personnel Crew salaries Depreciation $2,120,000 788,500 850,000 430,000 $4,188,500 Total costs Blue Star management wishes to assign these costs to individual rights in order to gauge the profitability of its service offerings. The following activity bases were Identified with the budgeted costs Airline Cost Fuel crew, and depreciation costs Ground personnel Activity Base Number of miles Town Number of arrivals and departures at an airport The size of the company's ground operation in each oty is determined by the size of the workforce. The following monthly data are available from corporate records for each terminal operation Terminal City Charlotte Ground Personnel Cost 5256,000 97,500 129,000 Number of Arrivals / Departures 320 puttsburgh 130 Detron 150 Deck My work more Cho My Workestering Puel, crew, and depreciation costs Number of miles flown Ground personnel Number of arrivals and departures at an airport The size of the company's ground operation in each oty is determined by the size of the workforce. The following monthly data are available from corporate records for sach terminal operation Ground Personnel Cost Number of Arrivals / Departures 320 Terminal City Charlotte Pittsburgh Detroit San Francisco $256,000 97,500 129,000 306,000 130 150 340 Total $788,500 940 Three recent representative lights have been selected for the profitability study. Their characteristics are as follows: Miles Flown Number of Passengers Flight 101 Flight 102 Flight 103 Description Charlotte to San Francisco Detroit to Charlotte Charlotte to Pittsburgh 2,000 800 80 SO Ticket Price per Passenger $695.00 441,50 382.00 400 20 Required: 1. Determine the fuel, crew, and depreciation cost per mile flown. per me 2 minn the cost ornare termice Check My Work more her 441.50 Flight 103 Charlotte to Pittsburgh 400 20 382.00 Required: 1. Determine the fuel, crew, and depreciation cost per mile flown. per mile 2. Determine the cost per arrival or departure by terminal city. Charlotte Pittsburgh Detroit San Francisco its origin and destination city 3. Use the information in (1) and (2) to construct a profitability report for the three flights. Each fight has a single arrival and departure pairs Blue Star Airline Flight Profitability Report For Three Representative Flights Flight 101 Flight 102 Flight 103 Passenger revenue Puel, crow, and depreciation costs Ground personnel Total costs Flight operating income (oss) Check My Work more Check My Work uses romaining Previous Nex