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Ariel's Advertising Agency wants to reward its top sales staff with a trip and is deciding between two options. One option is a 7-day trip

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Ariel's Advertising Agency wants to reward its top sales staff with a trip and is deciding between two options. One option is a 7-day trip to Hawaii for the top 10 sales staff and a guest. The other option is a 10-day trip to a private island Co~owned by Ariel and her brother. The island was left to them by their parents and has been in the family for generations. The island can be rented as a private getaway and is otten rented by celebrities or CEO's. Ariel and her brother pay the property taxes on the island which amount to $2.5 million per year. When either Ariel or her brother use the island or permit friends or family to stay, or reserve rooms for people, those individuals get 50% off the standard room rate. Individuals traveling to the island land at a nearby airport and take the island's water taxi which runs twice every day, 365 days a year. The staff that maintain the island (cooks, lawn care. housekeeping. etc.) are all paid a salary and thus are paid regardless of how many in viduals are on the island. Ariel has already spent $3,000 on each of the employees for a swag bag that will be given to them regardless of which Ariel (hoses. The bag contains luxury towels, lotions, perfumes and Colognes, and other high end gitts to make the trip more pleasurable tor the recipient. The costs per person associated with each option are outlined below. Cost of Hawaii Trip Cost of Private Island Trip Airfare $850 Airfare $600 Meals $1,000 Meals $900 Hotel $2000 Hotel 7 Standard Fee $4000 Taxis $300 Ferry , each way $200 1. What are the relevant costs [enter a dollarvalue) of the Hawaii trip per individual? 2. What are the relevant costs [enter a dollarvalue) of the Private Island trip per individual? 3. What is the incremental cost of the two trips Ion a per person basis}? 4. Without considering qualitative tactors which alternative should Ariel choose? enter Hawaii or Private Island

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