Normal No S Head Exorcise 12-16 Identification of Relevant Costs [L012-1] Bill has just retumed from a duck hunting trip. He brought home eight ducks. Bil'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, $12,000; usable for eight seasons; 10 hunting trips per season Travel expense (pickup truck): $ 150 100 miles at $0.31 per mile (gas, oil, and tires-$0.21 per mile; depreciation and insurance $0.10 31 20 per mile) Shotgun shells (two boxes per hunting trip) Boat 29 Cost, $2,320, usable forreight seasons; 10 hunting trips per season Hunting license: Cost, $30 for the season; 10 hunting trips per season Money lost playing poker Loss, $24 (Bill plays poker every weekend whether he goes hunting or stays at home Bottle of whiskey 24 15 s 272 Cost, $15 per hunting trip (used to ward off the cold) Total cost S 34 Cost per duck ($272 8 ducks) 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? 100 miles at S0.31 per mile (gas, oll, and tires- $0 21 par mile; depreciation and insurance $0.10 per mile) 31 20 Shotgun shells (two boxes per hunting trip) 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 Money lost playing poker: Loss, $24 (Bill plays poker every weekend whether he goes hunting or stays at home) Bottle of whiskey 24 Cost, $15 per hunting trip (used to ward off the cold) Total cost $ 272 S 34 Cost per duck ($272+8 ducks) 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? 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? 2