Identifying Relevant and Irrelevant Costs Morrey Taylor is considering taking a
ID: 2526513 • Letter: I
Question
Identifying Relevant and Irrelevant Costs Morrey Taylor is considering taking a part-time job at a local clothing store. Morrey loves the store and shops there often, but unfortunately, employee discounts are given only to full-time employees. If Morrey takes this job, she will have to withdraw from her Tuesday night basket-weaving class to work. Accepting the job would also mean that Morrey must give up her volunteer work at the local animal sanctuary, an activity that she enjoys a great deal. The new job would pay approximately $125 per week but would cost her $15 per week in gas. Morrey would be able to keep her Saturday afternoon job at the library that pays S40 per week. 1. Morrey's decision. a. The $125 income from the new job. b. The $40 income from the library. c. The $50 nonrefundable registration fee Sarah paid for the basket-weaving class d. The $15 cost for gas. c. The $75 per month that Sarah spends for clothing. f. The time Morrey spends volunteering at the animal sanctuaryExplanation / Answer
Solution:
a) The $125 income from new job - Relevant for decesion making
b) The $40 income from liabrary - Irrelevant for decesion making as Morry can keep the library job
c) The $50 non refundable registeration fee sarah paid ofr the basket weaving class - Relevant for decesion making as Morrey will not get refund and she have to withdraw from classes.
d) The $15 cost for gas = Relevatn for decesion making
e) The $75 per month that Sarah spends on clothing = Irrelevant for decesion making as same can also spent after the job and she will not receive any employee discount also.
f) The time morrey spend volunteering at the animal sanctuary - Relevant for decesion making as Morrey must give up her volunteer work if she accept the job
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