Situation: Two days ago, Kerry returned from a trip across the country for a job interview at the corporate headquarters with her current employer. She just was offered the job which would bring a one grade level promotion along with a salary increase. Her research indicates that the cost of housing and grocery costs would be higher in the new location. Currently she takes public transportation to and from work and she will be able to do the same in the new location. The cost of public transportation for commuting to work will be the same as her current costs.

The company pays for all the costs of moving her car and household goods but does not cover the cost of cancelling her lease on her apartment or any special costs associated with relocating a pet. The lease on her current apartment runs for another 10 months. She had two elderly rescue dogs both of which are too large to travel on a plane in the main cabin. Kerry had decided that if she were to take this job and relocate, she would drive with her pets to the new location. She recently purchased a new car which she plans to keep in her new location. She financed her new car and has determined that the cost of car insurance in the new location will be the same as her current costs. She also recently signed a contract for a non-cancellable 24-month membership at a local gym. Unfortunately, she will not be able to use her current gym membership in the new location. The corporate headquarters has an agreement with a gym across the street and employees can use the gym for a cost of $25.00 a month. The cost $25.00 monthly cost for the gym is not paid for by the company and would be a personal expense of any employee who wants to use those facilities. Kerry would definitely use the gym if she takes the new job.

Here is Kerry s dilemma. Assume that Kerry s only options are relocating to take the new job or staying in her current job and location.

Given these two alternatives, identify the following costs as relevant versus irrelevant.

1. The cost of housing and groceries. a. Relevant b. Irrelevant

2. The cost of moving her household goods. a. Relevant b. Irrelevant

3. The cost of public transportation to and from work. a. Relevant b. Irrelevant

4. The cost of membership in the gym across from the corporate headquarters. a. Relevant b. Irrelevant

5. The cost of car payments. a. Relevant b. Irrelevant

6. The cost of relocating her pets. a. Relevant b. Irrelevant

7. In 25 words or less, if you were facing the same alternatives as Kerr, what qualitative issues would make a difference in your decision?