EB7.
LO 2.2Case Airlines provides charter airline services. The fixed expenses to operate the company’s aircraft are $377,300 in January and $378,880 in February. It costs Case Airlines $0.45 per mile in variable costs. In January, Case aircraft flew a total of 385,000 miles, and in February, Case aircraft flew a total of 296,000 miles. Using this information, answer the following:
What were the total costs to operate the aircraft in January and February, respectively?
What were the total costs per mile to operate the fleet in January and February, respectively?
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