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Bill just returned from a duck hunting trip with eight ducks. Bills friend, John, disapproves of duck hunting, and to discourage Bill from further hunting,
Bill just returned from a duck hunting trip with 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, $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 per hunting trip) | 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 whether he goes hunting or stays at home) | 24 |
Bottle of whiskey: | |
Cost, $15 per hunting trip (used to ward off the cold) | 15 |
Total cost | $ 272 |
Cost per duck ($272 8 ducks) | $ 34 |
Required:
- Assuming the duck hunting trip Bill just completed is typical, what costs are relevant to a decision as to whether Bill should go duck hunting again this season?
- Suppose Bill gets lucky on his next hunting trip and shoots 10 ducks using the same amount of shotgun shells he used on his previous hunting trip to bag 8 ducks. How much would it have cost him to shoot the last two ducks?
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