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We received delivery of a new airplane on 1st January. The total cost of the plane was $10 million. A break-down of the costs to build the plane was given by the manufacturers as:
Aircraft body $3,000,000
Engines 4,000,000
Fitting out of aircraft:
Seats 1,000,000
Carpets 50,000
Electrical equipment:
Passenger seats 200,000
Cockpit 1,500,000
Food preparation equipment 250,000
All costs included installation and labor costs associated with that part.
It was expected that the aircraft would be kept for 10 years and then sold. The main value of the aircraft at that stage is the body and the engines. The expected selling price is $2,100,000 with the body and engine retaining proportionate value.
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