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Exercise 11-16 (Algo) Identification of Relevant Costs [LO11-1] Bill has just returned from a duck hunting trip. He brought home 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, $12,000; usable for eight seasons; 14 hunting trips per season Travel expense (pickup truck): 100 miles at 50.43 per mile (gas, oil, and tires-$0.24 per mile; depreciation and insurance-50.19 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, $50 for the season; 14 hunting trips per season Money lost playing poker: Loss, $32 (Bill plays poker every weekend whether he goes hunting or stays at home) Bottle of whiskey: Cost, $15 per hunting trip (used to ward off the cold) Total cost Cost per duck ($250 + 8 ducks) $ 107 43 25 24 32 15 $250 $ 31 Required: 1. Assuming 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? 2. Suppose Bill gets lucky on his next hunting trip and shoots 14 ducks using the same amount of shogun 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?

Exercise 11-16 (Algo) Identification of Relevant Costs [LO11-1] Bill has just returned from a duck hunting trip. He brought home 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, $12,000; usable for eight seasons; 14 hunting trips per season Travel expense (pickup truck): 100 miles at 50.43 per mile (gas, oil, and tires-$0.24 per mile; depreciation and insurance-50.19 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, $50 for the season; 14 hunting trips per season Money lost playing poker: Loss, $32 (Bill plays poker every weekend whether he goes hunting or stays at home) Bottle of whiskey: Cost, $15 per hunting trip (used to ward off the cold) Total cost Cost per duck ($250 + 8 ducks) $ 107 43 25 24 32 15 $250 $ 31 Required: 1. Assuming 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? 2. Suppose Bill gets lucky on his next hunting trip and shoots 14 ducks using the same amount of shogun 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?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter14: Capital Structure Management In Practice
Section14.A: Breakeven Analysis
Problem 5P
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Exercise 11-16 (Algo) Identification of Relevant Costs [LO11-1] Bill has just returned from a duck hunting trip. He brought home 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, $12,000; usable for eight seasons; 14 hunting trips per season Travel expense (pickup truck): 100 miles at $0.43 per mile (gas, oil, and tires-$0.24 per mile; depreciation and insurance-50.19 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, $50 for the season; 14 hunting trips per season Money lost playing poker! Loss, $32 (Bill plays poker every weekend whether he goes hunting or stays at home) Bottle of whiskey: Cost, $15 per hunting trip (used to ward off the cold) Total cost Cost per duck ($250 + 8 ducks) $ 107 43 25 24 32 15 $250 $31 Required: 1. Assuming 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? 2. Suppose Bill gets lucky on his next hunting trip and shoots 14 ducks using the same amount of shogun 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?
Transcribed Image Text:Exercise 11-16 (Algo) Identification of Relevant Costs [LO11-1] Bill has just returned from a duck hunting trip. He brought home 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, $12,000; usable for eight seasons; 14 hunting trips per season Travel expense (pickup truck): 100 miles at $0.43 per mile (gas, oil, and tires-$0.24 per mile; depreciation and insurance-50.19 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, $50 for the season; 14 hunting trips per season Money lost playing poker! Loss, $32 (Bill plays poker every weekend whether he goes hunting or stays at home) Bottle of whiskey: Cost, $15 per hunting trip (used to ward off the cold) Total cost Cost per duck ($250 + 8 ducks) $ 107 43 25 24 32 15 $250 $31 Required: 1. Assuming 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? 2. Suppose Bill gets lucky on his next hunting trip and shoots 14 ducks using the same amount of shogun 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?
Complete this question by entering your answers in the tabs below. Required 1 Required 2 Assuming 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? Total Show Transcribed Text $ 0 <Required 1 o 3 Required 1 Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 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? Cost of last six ducks Required 2 >
Transcribed Image Text:Complete this question by entering your answers in the tabs below. Required 1 Required 2 Assuming 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? Total Show Transcribed Text $ 0 <Required 1 o 3 Required 1 Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 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? Cost of last six ducks Required 2 >
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