exercise 12-16 chapter 12

Exercise 12-16 Identification of Relevant Costs [LO12-1) 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, $11,000; wsable for eight seasons 14 hunting trips per season $ 98 Travel expense pickup truck) 100 miles at se 33 per mile (gas, oil and tires-50.20 per mile; depreciation and insurance-50.13 per mile) 33 Shotgun shells (two boxes per hunting trip) 40 Boat: Cost, $2,160, sable for eight seasons 14 hunting trips per season 19 Hunting license Cost, $40 for the season hunting trips per season Money lost playing poker Loss, $24 (11 plays poker every weekend whether he goes hunting or stays at home) 24 Bottle of whiskey Cost, $20 per hunting trip (used to ward off the cold) 20 Total cost $. 237 Cost per duck (52378 ducks) $ 30 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? Required 1 Required 2 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? Total $ 0 Required 1 Required 2 Suppose Bill gets ticky 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