Jason brought home eight ducks from his last hunting trip in northern Ontario. His friend Harry dislikes
Question:
Jason brought home eight ducks from his last hunting trip in northern Ontario. His friend Harry dislikes any type of hunting, and to discourage Jason from further hunting, Harry has presented him with the following cost estimates:
Required:
1. Assuming that the duck-hunting trip Jason has just completed is typical, what costs are relevant to a decision as to whether Jason should go duck hunting again this season?
2. Suppose that Jason gets lucky on his next hunting trip and shoots 10 ducks in the amount of time it took him to shoot 8 ducks on his last trip. How much would it have cost him to shoot the last 2 ducks? Explain.
3. Which costs are relevant in a decision of whether Jason should give up hunting? Explain.
Step by Step Answer:
Managerial Accounting
ISBN: 978-1259024900
9th canadian edition
Authors: Ray Garrison, Theresa Libby, Alan Webb