Bill just returned from a duck hunting trip with eight ducks. Bill's friend, John, disapproves of duck hunting, and to discourage Bill from further hunting, John presented him with the following cost estimate per duck: Camper and equipment: Cost, $17,000; usable for eight seasons; 14 hunting trips per season Travel expense (pickup truck): 100 miles at $0.45 per mile (gas, oil, and tires-$0.26 per mile; depreciation and insurance-$0.19 per mile) Shotgun shells (two boxes per hunting trip) Boat: Cost, $2,720, usable for eight seasons; 14 hunting trips per season Hunting license: Cost, $30 for the season; 14 hunting trips per season Money lost playing poker: Loss, $38 (Bill plays poker every weekend whether he goes hunting or stays at home) Bottle of whiskey: Cost, $10 per hunting trip (used to ward off the cold) Total cost Cost per duck ($291 + 8 ducks) Complete this question by entering your answers in the tabs below. $ 152 Required 1 Required 2 45 20 24 2 38 Required: 1. Assuming the duck hunting trip Bill just completed is typical, what costs are relevant to a decision as to whether Bill should go duck hunting again this season? 2. Suppose Bill gets lucky on his next hunting trip and shoots 14 ducks using the same amount of shotgun shells he used on his previous hunting trip to bag 8 ducks. How much would it have cost him to shoot the last six ducks? 10 $ 291 $36 Assuming the duck hunting trip Bill just completed is typical, what costs are relevant to a decision as to whether Bill should go duck hunting again this season?
Bill just returned from a duck hunting trip with eight ducks. Bill's friend, John, disapproves of duck hunting, and to discourage Bill from further hunting, John presented him with the following cost estimate per duck: Camper and equipment: Cost, $17,000; usable for eight seasons; 14 hunting trips per season Travel expense (pickup truck): 100 miles at $0.45 per mile (gas, oil, and tires-$0.26 per mile; depreciation and insurance-$0.19 per mile) Shotgun shells (two boxes per hunting trip) Boat: Cost, $2,720, usable for eight seasons; 14 hunting trips per season Hunting license: Cost, $30 for the season; 14 hunting trips per season Money lost playing poker: Loss, $38 (Bill plays poker every weekend whether he goes hunting or stays at home) Bottle of whiskey: Cost, $10 per hunting trip (used to ward off the cold) Total cost Cost per duck ($291 + 8 ducks) Complete this question by entering your answers in the tabs below. $ 152 Required 1 Required 2 45 20 24 2 38 Required: 1. Assuming the duck hunting trip Bill just completed is typical, what costs are relevant to a decision as to whether Bill should go duck hunting again this season? 2. Suppose Bill gets lucky on his next hunting trip and shoots 14 ducks using the same amount of shotgun shells he used on his previous hunting trip to bag 8 ducks. How much would it have cost him to shoot the last six ducks? 10 $ 291 $36 Assuming the duck hunting trip Bill just completed is typical, what costs are relevant to a decision as to whether Bill should go duck hunting again this season?
Chapter15: Choice Of Business Entity—other Considerations
Section: Chapter Questions
Problem 71P
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Transcribed Image Text:Bill just returned from a duck hunting trip with eight ducks. Bill's friend, John, disapproves of duck hunting, and to discourage Bill from
further hunting, John presented him with the following cost estimate per duck:
Camper and equipment:
Cost, $17,000; usable for eight seasons; 14 hunting trips per season
Travel expense (pickup truck):
100 miles at $0.45 per mile (gas, oil, and tires-$0.26 per mile; depreciation and
insurance $0.19 per mile)
Shotgun shells (two boxes per hunting trip)
Boat:
Cost, $2,720, usable for eight seasons; 14 hunting trips per season
Hunting license:
Cost, $30 for the season; 14 hunting trips per season
Money lost playing poker:
Loss, $38 (Bill plays poker every weekend whether he goes hunting or stays at home)
Bottle of whiskey:
Cost, $10 per hunting trip (used to ward off the cold)
Total cost
Cost per duck ($291 ÷ 8 ducks)
Complete this question by entering your answers in the tabs below.
$ 152
Required 1 Required 2
45
20
24
2
38
Required:
1. Assuming the duck hunting trip Bill just completed is typical, what costs are relevant to a decision as to whether Bill should go duck
hunting again this season?
2. Suppose Bill gets lucky on his next hunting trip and shoots 14 ducks using the same amount of shotgun shells he used on his
previous hunting trip to bag 8 ducks. How much would it have cost him to shoot the last six ducks?
10
$291
$36
Assuming the duck hunting trip Bill just completed is typical, what costs are relevant to a decision as to whether Bill should go
duck hunting again this season?
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