Isabella Canton is considering taking a part-time job at a local clothing store. She loves the store and shops there often, but unfortunately, employee discounts are given only to full-time employees. If Isabella takes this job, she would have to withdraw from h Tuesday night basket-weaving class to work. Accepting the job also would mean that Isabella must give up her volunteer work at the local animal sanctuary, an activity she enjoys a great deal. The new job would pay approximately $125 per week but would cost Isabella $15 per week in gas. Isabella would be able to keep her Saturday afternoon job at the library that pays $40 per week. Required: A list of factors Isabella has identified follows. For each one, indicate whether it is relevant or irrelevant to Isabella's decision. 1. The $125 income from the new job. 2. The $40 income from the library The $50 nonrefundable registration fee Isabella paid for the basket-weaving class.
Isabella Canton is considering taking a part-time job at a local clothing store. She loves the store and shops there often, but unfortunately, employee discounts are given only to full-time employees. If Isabella takes this job, she would have to withdraw from h Tuesday night basket-weaving class to work. Accepting the job also would mean that Isabella must give up her volunteer work at the local animal sanctuary, an activity she enjoys a great deal. The new job would pay approximately $125 per week but would cost Isabella $15 per week in gas. Isabella would be able to keep her Saturday afternoon job at the library that pays $40 per week. Required: A list of factors Isabella has identified follows. For each one, indicate whether it is relevant or irrelevant to Isabella's decision. 1. The $125 income from the new job. 2. The $40 income from the library The $50 nonrefundable registration fee Isabella paid for the basket-weaving class.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![M7-3 (Static) Identifying Relevant and Irrelevant Costs [LO 7-2]
Isabella Canton is considering taking a part-time job at a local clothing store. She loves the store and shops there often, but
unfortunately, employee discounts are given only to full-time employees. If Isabella takes this job, she would have to withdraw from her
Tuesday night basket-weaving class to work. Accepting the job also would mean that Isabella must give up her volunteer work at the
local animal sanctuary, an activity she enjoys a great deal. The new job would pay approximately $125 per week but would cost
Isabella $15 per week in gas, Isabells would be able to keep her Saturday afternoon job at the library that pays $40 per week.
Required:
A list of factors Isabella has identified follows. For each one, indicate whether it is relevant or irrelevant to Isabella's decision.
1. The $125 income from the new job.
2. The $40 income from the library.
3. The 550 nonrefundable registration fee Isabella paid for the basket-weaving class.
4. The $15 cost for gas
5. The $75 per month Isabella spends for clothing
6. The time Isabella spends volunteering at the animal sanctuary](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F27669ab5-fdad-40f4-94e1-9b2e3d846cf4%2F398ae8ba-e490-4cd4-9fd6-bf2171604cd6%2Foixgsos_processed.jpeg&w=3840&q=75)
Transcribed Image Text:M7-3 (Static) Identifying Relevant and Irrelevant Costs [LO 7-2]
Isabella Canton is considering taking a part-time job at a local clothing store. She loves the store and shops there often, but
unfortunately, employee discounts are given only to full-time employees. If Isabella takes this job, she would have to withdraw from her
Tuesday night basket-weaving class to work. Accepting the job also would mean that Isabella must give up her volunteer work at the
local animal sanctuary, an activity she enjoys a great deal. The new job would pay approximately $125 per week but would cost
Isabella $15 per week in gas, Isabells would be able to keep her Saturday afternoon job at the library that pays $40 per week.
Required:
A list of factors Isabella has identified follows. For each one, indicate whether it is relevant or irrelevant to Isabella's decision.
1. The $125 income from the new job.
2. The $40 income from the library.
3. The 550 nonrefundable registration fee Isabella paid for the basket-weaving class.
4. The $15 cost for gas
5. The $75 per month Isabella spends for clothing
6. The time Isabella spends volunteering at the animal sanctuary
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