Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bill has just returned from a duck hunting trip. He 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 brought home eight ducks. Bills friend, John, disapproves of duck hunting, and to discourage Bill from further hunting, John presented him with the following cost estimate per duck:
Camper and equipment:
Cost, $17,000; usable for eight seasons; 14 hunting trips per season $ 152
Travel expense (pickup truck):
100 miles at $0.40 per mile (gas, oil, and tires$0.24 per mile; depreciation and insurance$0.16 per mile)40
Shotgun shells (two boxes per hunting trip)40
Boat:
Cost, $2,320, usable for eight seasons; 14 hunting trips per season 21
Hunting license:
Cost, $40 for the season; 14 hunting trips per season 3
Money lost playing poker:
Loss, $36(Bill plays poker every weekend whether he goes hunting or stays at home)36
Bottle of whiskey:
Cost, $15 per hunting trip (used to ward off the cold)15
Total cost $ 307
Cost per duck ($307-: 8 ducks) $ 38
Required:
1. Assuming the duck hunting trip Bill has just completed is typical, what costs are relevant to a decision as to whether Bill should go duck hunting again this season?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Answer To determine the relevant costs for Bills decision on whether to go duck hunting again this season we need to identify the costs that will chan... 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_2

Step: 3

blur-text-image_3

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 Finance questions

Question

Design a data warehouse.

Answered: 1 week ago

Question

8. How do epinephrine and cortisol enhance memory storage?

Answered: 1 week ago