Reference no: EM132840584

Perez 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 Perez to carry the excess. Perez contracts with independent pilots to fly its planes on a per-trip basis. Perez recently purchased an airplane that cost the company $6,885,000. The plane has an estimated useful life of 25,500,000 miles and a zero salvage value. During the first week in January, Perez flew two trips. The first trip was a round-trip flight from Chicago to San Francisco, for which Perez paid $300 for the pilot and $250 for fuel. The second flight was a round trip from Chicago to New York. For this trip, it paid $250 for the pilot and $125 for fuel. The round trip between Chicago and San Francisco is approximately 4,900 miles and the round trip between Chicago and New York is 1,200 miles.

Required

Problem 1: Determine the total cost of each trip.