Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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, $16,000; usable for eight seasons; 14 hunting trips per season $ 143
Travel expense (pickup truck):
100 miles at $0.45 per mile (gas, oil, and tires$0.28 per mile; depreciation and insurance$0.17 per mile) 45
Shotgun shells (two boxes per hunting trip) 35
Boat:
Cost, $2,400, usable for eight seasons; 14 hunting trips per season 21
Hunting license:
Cost, $70 for the season; 14 hunting trips per season 5
Money lost playing poker:
Loss, $32 (Bill plays poker every weekend whether he goes hunting or stays at home) 32
Bottle of whiskey:
Cost, $20 per hunting trip (used to ward off the cold) 20
Total cost $ 301
Cost per duck ($301 8 ducks) $ 38

Required:

  1. 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?
  2. Suppose Bill gets lucky on his next hunting trip and shoots 14 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 six ducks?

Required 1

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?

Total $0

Required 2

Suppose Bill gets lucky on his next hunting trip and shoots 14 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 six ducks?

Cost of last six 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

More Books

Students also viewed these Accounting questions

Question

Is P[A j B] P[A], P[A j B] P[A] or is neither necessarily true?

Answered: 1 week ago

Question

5. How can we use language to enhance skill in perceiving?

Answered: 1 week ago

Question

What actions might have prevented Bobs resignation?

Answered: 1 week ago