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Adams Airlines is a small airline that occasionally carries overload shipments for the overnight delivery company Never-Fail, Inc

Accounting

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Adams 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 Adams to carry the excess. Adams contracts with independent pilots to fly its planes on a per-trip basis. Adams recently purchased an airplane that cost the company $5,934,000. The plane has an estimated useful life of 25,800,000 miles and a zero salvage value. During the first week in January, Adams flew two trips. The first trip was a round-trip flight from Chicago to San Francisco, for which Adams paid $400 for the pilot and $350 for fuel. The second flight was a round trip from Chicago to New York. For this trip, it paid $350 for the pilot and $175 for fuel. The round trip between Chicago and San Francisco is approximately 4,700 miles and the round trip between Chicago and New York is 1,500 miles.

Required

1. Select if the costs mentioned below are direct or indirect.
2. Determine the total cost of each trip.