Bill has just returned from a duck hunting trip. He has brought home eight ducks
ID: 2489230 • Letter: B
Question
Bill has just returned from a duck hunting trip. He has brought home eight ducks. But's friend, john disapproves of duck hunting, and to discoutage Bill form further hunting John has presented him with the following costs estimate per duck. Required: 1. Assuming That the duck hunting trip Bill has trip. Bill has completed is typical, what costs are relevant to a desicion as to whether Bill Should go duck, hunting again this season? 2. Suppose that Bill gets lucky on his next hunting trip and shoots 10 ducks in the amont of thime it took. him to shoot 8 ducks on his last trip. How much would it have cost him to shoot the last two ducks?Explanation / Answer
1) The relevant costs are:
Travel expense-gas, oil etc for pick up truck = 100*0.28 = 28.00
Shotgun shells = 25.00
Whisky = 20.00
Total relevant costs = 73.00 per hunting trip.
Cost of camper and equipment, depreciation and insurance of pick up truck, boat depn, gun licence are already incurred and they do not increase or decrease on account of a single trip. Poker would be played at the weekend, whether he goes for hunting or not.
2) As in undertaking a hunting trip all relevant costs for the trip are incurred, it is immaterial whether he hunts 8 or ten trucks. So no additional cost is incurred for shooting the last two ducks.
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