PLEASE SHOW ALL WORK AND CALCULATIONS. NOT JUST ANSWERS.

Question 5: Ace Acting Co. is a professional actor training group that trains stage actors and is headquartered in Los Angeles. The CEO of the company, Allen Ace, is considering expanding and opening an office in New York City but he just received an interesting business opportunity in the San Francisco area to partner with a movie production company located there. Mr. Ace knows he can only accept one of these opportunities at the current time. He has already purchased his non-refundable ticket to New York for $525 however the ticket can be exchanged for a voucher for a future trip. To ensure that he was able to stay in the appropriate location within each city, he has already made hotel reservations. These reservations are cancelable except for a 5% cancellation fee. The hotel in New York is $680 total for the two nights and the San Francisco hotel is $500 for the length of the stay. If he goes to New York, Mr. Ace plans to purchase a ticket to see Hamilton on Broadway at a cost of $450. He will also incur taxi fees of $100 and expects to spend $200 for meals in New York and $320 in San Francisco. Since he would be able to drive from Los Angeles to San Francisco, he would get reimbursed $250 for mileage. Mr. Ace will pay for all costs and will be reimbursed by his company for business expenses. Required: 1. What are the relevant costs of each trip? 2. What are the incremental costs (and what is the total incremental cost)? 3. Without considering qualitative factors (thus use numbers to analyze), which alternative should Allen choose? Why? 4. What are three qualitative factors that Allen might consider? 5. Why is it important to use relevant costs and revenues when evaluating decisions