Exercise $11-16($Algo$)$ Identification of Relevant Costs $[$LO$11-1]$

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 from further hunting, John presented him with the following cost estimate per duck:

Camper and equipment:

Cost, $$13,000$; usable for eight seasons; $14$ hunting trips per season $ $116$

Travel expense $($pickup truck$)$:

$100$ miles at $$0\mathrm{.}42$ per mile $($gas$,$ oil, and tires$$$$0\mathrm{.}24$ per mile; depreciation and insurance$$$$0\mathrm{.}18$ per mile$)42$

Shotgun shells $($two boxes per hunting trip$)20$

Boat:

Cost, $$2,080,$ usable for eight seasons; $14$ hunting trips per season $19$

Hunting license:

Cost, $$70$ for the season; $14$ hunting trips per season $5$

Money lost playing poker:

Loss, $$36($Bill plays poker every weekend whether he goes hunting or stays at home$)36$

Bottle of whiskey:

Cost, $$25$ per hunting trip $($used to ward off the cold$)25$

Total cost $ $263$

Cost per duck $($$$263-$: $8$ ducks$)$ $ $33$

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?

$2.$ 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?