Question
Situation: Jennys employer has offered her a new position located 2,200 miles from her current job. The salary in the new position is higher than
Situation: Jennys employer has offered her a new position located 2,200 miles from her current job. The salary in the new position is higher than her current salary and it would represent the start of a completely different career path, one that she has wanted to pursue. The company will pick up most of the costs associated with the move with the exception of the costs associated with moving her dog, Peri. Driving across country with Peri is not an option because the company does not want her to spend that much time on the road. If she takes the new job, she will need to contract with a private company that provides door to door transportation for pets. The private company, although costly, specializes in the transport of pets and is well respected. Peri is a large, older dog so Jenny does not want to have him transported by plane.
She expects that the commuting costs to be slightly higher in the new location compared to her current commuting costs. The cost of apartment rental, however, will be about the same as her current costs. Her current monthly costs also include the payment of a student loan, a car payment and a gym membership.
For questions 21-24 which of the following costs would be considered relevant and which would be irrelevant to Jennys decision to relocate?
21. Monthly apartment rental.
a. Relevant b. Irrelevant
22. Commuting costs.
a. Relevant b. Irrelevant
23. Cost to move Peri, her dog.
a. Relevant b. Irrelevant
24. Salary.
a. Relevant b. Irrelevant
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