Question
Questions 1-8 are based on Sandies situation. . Two years ago, Sandie moved to her current location for a new job and purchased a condominium
Questions 1-8 are based on Sandies situation. . Two years ago, Sandie moved to her current location for a new job and purchased a condominium close to her office. Her housing costs include the mortgage payment, real estate taxes, condominium fee and utilities. Six months ago, she adopted a rescue dog, Ginger. Last month, she signed a non-refundable 24-month membership contract with a gym that is near her office. Sandie has many interests including a newly developed interest in real estate investing. Last week, she registered for a real estate workshop that will be held the second weekend in May. This workshop is only held twice a year and the location is quite convenient, being within walking distance of her residence. The registration fee is non-refundable. She just got an email from one of her cousins reminding her of her great aunts birthday celebration which is scheduled for the same weekend as the real estate workshop. Months ago, Sandie made firm plans to return to her hometown for her aunts birthday and sent a check to her cousin to pay for her part of the gift certificate they were going to present to her great aunt at the celebration. In anticipation of that trip, Sandie purchased a non-refundable round trip airline ticket and reserved a hotel room. The hotel room is fully refundable. She will need to rent a car but had not yet made any car rental arrangements. and she will need to plan for pet sitting for the time she will be away. Here is Sandies dilemma. Assume that Sandies only options are taking the trip to her great aunts birthday celebration or taking part in the workshop. Regardless of her decision (attending the workshop versus the birthday celebration), she would not expect her cousins to refund her part of the gift certificate. Required: Given these two alternatives, identify the following costs as relevant versus irrelevant. 1. The cost of the hotel in her hometown. a. Relevant b. Irrelevant 2. The cost of the airline ticket to her hometown. a. Relevant b. Irrelevant ,3. The mortgage payment. a. Relevant b. Irrelevant 4. The cost of a pet sitter. a. Relevant b. Irrelevant 1 5. The cost of real estate workshop. a. Relevant b. Irrelevant 6. The cost of her car rental a. Relevant b. Irrelevant 7. The cost of the condominium fee a. Relevant b. Irrelevant 8. In 25 words or less, if you were facing the same alternatives as Rose, what qualitative issues would make a difference in your decision
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