Exhibit: Refer to Exhibit 14-4 and calculate the...
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Exhibit:
Refer to Exhibit 14-4 and calculate the total revenue less costs without the irrelevant data. Nonstop With Stop In Differential RouteSan Francisco Amount Total revenue less costs Exhibit 14-4 Flight-Route Decision: Worldwide Airways Revenues and Costs under Two Alternatives With Stop in San Francisco Nonstop Differential Relevant or Irrelevant Route Amount: (a)- (b) Relevant (1) Passenger revenue $240,000 80,000 (3) Landing fee in San Francisco-0- $258,000 80,000 (5,000) (3,000) (2,500) (24,000) (4,600) (1,000) $297,900 S(18,000) Irrelevant (2) Cargo revenue Relevant Relevant Relevant Relevant Relevant (4) Use of airport gate facilities (5) Flight crew cost (6) Fuel (7) Meals and services (2,000) (21,000) (4,000) (1,000 $292,000 5,000 3,000 500 3,000 600 Irrelevant (8) Aircraft maintenance Total revenue less costs S (5,900) In columns (a) and (b), parentheses denote costs and numbers without parentheses are revenues. fIn column (c), parentheses denote differential items favoring option (b)
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