Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 27 Sep 2017 My Price 9.00

Camper and equipment

Bill has just returned from a duck-hunting trip. He has brought home eight ducks. Bill’s friend John disapproves of duck hunting, and to discourage Bill from further hunting, John has presented him with the following cost estimate per trip:

 

 
Camper and equipment:      
Cost, $12,000; usable for 8 seasons; 10 hunting trips per season $ 150  
Travel expense (pickup truck):      
100 kilometres at $0.12 per kilometre (gas, oil, and tires—$0.07per kilometre; depreciation and insurance—$0.05 per kilometre)   12  
Shotgun shells (two boxes)   20  
Boat:      
Cost, $2,320; usable for 8 seasons; 10 hunting trips per season   29  
Hunting licence:      
Cost, $30 for the season; 10 hunting trips per season   3  
Money lost playing poker:      
Loss, $18 (Bill plays poker every weekend)   18  
A bottle of Old Grandad:      
Cost, $8 (used to ward off the cold)   8  
 
Total cost $ 240  
 
Cost per duck ($240 ÷ 8 ducks) $ 30  
 

 

Required:
(Leave no cells blank - be certain to enter "0" wherever required.)
 
1.

Assuming that 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?

 

Answers

Maurice Tutor
(5)
Status NEW Posted 27 Sep 2017 12:09 AM My Price 9.00

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