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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.


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.


Grade:

2 Answers

SHAIK AASIF AHAMED
askIITians Faculty 74 Points
6 years ago
Hello student,
I am not able to interpret your query. Please write down the problem clearly so that I canprovide you the meaningful answer.
Thanks and Regards
Shaik Aasif
askIITians faculty
surya
40 Points
6 years ago
question is nott clear

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