A student has a choice of 2 different full-time summer jobs for 12 weeks:

Job 1 is an office job - wages are $600 per week

cost of office job:

Gas: $40 per week

Parking: $20 per week

Lunch: $35 per week

Clothes: $350 one time cost

Laptop Computer: $600 one time cost

Job 2 is a lifeguard job at Jones Beach - wages are $220 per week.

costs of lifeguard job:

Gas: $20 per week

Lunch: $20 per week

1- Comment and answer:

a- The quantitative (net cost analysis) answers to your decision above

b- Name the qualitative factors that might influence you to choose the less paying job.

2- Identify, define and discuss the following with specific reference to above options:

a- Avoidable costs

b- Constraints

c- Differential costs

d- Relevant costs

e- Sunk costs