Mel Cheek is a fishing guide on the Chenega River. The fish are usually found 20 to 50 miles upriver. Once the fish are located, Mel slows the boat to trolling speed and fishes for about 6 hours before returning to dock. Mel has noted that overall fuel costs vary based on "miles upriver" and he is considering changing his guide fee to separately charge customers for estimated fuel costs. Below is Mel's log for 15 typical days showing "miles upriver to locate fish" and "total fuel cost". Day Miles Upriver   Fuel Cost 1 37   $86 2 41   93 3 22   73 4 28   80 5 49   99 6 25   74 7 33   85 8 37   87 9 44   93 10 24   77 11 29   80 12 45   96 13 35   83 14 36   87 15 31   80 Total 516   $1,273                   If the sole objective of the fuel charge is to approximately recover actual costs incurred each day, would "$2.50 per mile upriver" be a fair formula? What alternative formula might you suggest?

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, $11,000; usable for eight seasons; 14 hunting trips per season Travel expense (pickup truck): 100 miles at $0.40 per mile (gas, oil, and tires-$0.28 per mile; depreciation and insurance-$0.12 per mile) Shotgun shells (two boxes per hunting trip) Boat: Cost, $2,400, usable for eight seasons; 14 hunting trips per season Hunting license: Cost, $70 for the season; 14 hunting trips per season Money lost playing poker: Loss, $30 (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 ($244+ 8 ducks) $ 98 Complete this question by entering your answers in the tabs below. 40 40 21 5 30 10 $ 244 $ 30 Required: 1. Assuming…

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, $10,000; usable for eight seasons; 14 hunting trips per season Travel expense (pickup truck): $ 89 100 miles at $0.38 per mile (gas, oil, and tires-$0.20 per mile; depreciation and insurance-$0.18 per mile) 38 Shotgun shells (two boxes per hunting trip) 35 Boat: Cost, $2,160, usable for eight seasons; 14 hunting trips per season 19 Hunting license: 5 24 15 $ 225 $ 28 Cost, $70 for the season; 14 hunting trips per season Money lost playing poker: Loss, $24 (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 ($225 +8 ducks) Required: 1. Assuming the duck hunting trip Bill just completed is typical, what costs are relevant to a…

Sunrise Tours, a company owned by David Bartlett that sells motor coach tours to schools and other groups. Sunshine Tours owns a fleet of 10 motor coaches and employs 12 drivers, 1 maintenance technician, 3 sales representatives, and an office manager. Sunshine Tours pays for all fuel and maintenance on the coaches. Drivers are paid $0.50 per mile while in transit, plus $15 per hour while idle (time spent waiting while tour groups are visiting their destinations). The maintenance technician and office manager are both full-time salaried employees. The sales representatives work on straight commission. Q.Fuel consumption has increased significantly in recent months. David Bartlett is considering ways to promote improved fuel efficiency and reduce harmful emissions using stretch environmental targets, where drivers and the maintenance mechanic would receive a bonus if fuel consumption falls below 90% of budgeted fuel usage per mile driven. describe the potential benefits and costs of…