Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bill has just returned from a duck hunting trip. He has brought home eight ducks. Bill's friend, John, disapproves of duck hunting, and to discourage

Bill has just returned from a duck hunting trip. He has brought home eight ducks. Bill's friend, John, disapproves of duck hunting, and to discourage Bill from further hunting, John has presented him with the following cost estimate per duck:

Camper and equipment:

Cost, $12,000; usable for eight seasons; 10 hunting trips per season $150

Travel expense (pickup truck):

100 miles at $0.31 per mile (gas, oil, and tires$0.21 per mile; depreciation

and insurance$0.10 per mile) 31

Shotgun shells (two boxes) 20

Boat:

Cost, $2,320, usable for eight seasons; 10 hunting trips per season 29

Hunting license:

Cost, $30 for the season; 10 hunting trips per season 3

Money lost playing poker:

Loss, $24 (Bill plays poker every weekend) 24

Bottle of whiskey:

Cost, $15 (used to ward off the cold) 15

Total cost $272

Cost per duck ($272 8 ducks) $34

Assuming that the duck hunting trip Bill has just completed is typical, calculate the total cost which is relevant to a decision as to whether Bill should go duck hunting again this season?

Suppose that Bill 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 two ducks?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Ray Garrison, Eric Noreen, Peter Brewer

16th edition

1259307417, 978-1260153132, 1260153134, 978-1259307416

More Books

Students also viewed these Accounting questions

Question

1. Empirical or factual information,

Answered: 1 week ago

Question

1. To take in the necessary information,

Answered: 1 week ago