Leanne and Janine are planning a trip to Padre Island, Texas, during spring break. Members of the varsity volleyball team, they are looking forward to five days of beach volleyball and parasailing. They will drive Leanne’s car and estimate that they will pay the following costs during the trip: Motel $625 Food (each) 75 Gas (total) 50 Parasailing & equipment rental 125 They have reservations at the Beach-Vue Motel, which charges $95 per night for a single, $125 per night for a double, and an additional $20 per night if a rollaway bed is added to a double room. Leanne’s little sister, Cher, wants to go along. She isn’t into sports but thinks that five days of partying and relaxing on the beach would be a great way to unwind from the rigors of school. She figures that she could ride with Leanne and Janine and share their room. Required: 1. Using incremental costs only, what would it cost Cher to accompany Leanne and Janine? 2. Using the benefits-received method, what would it cost Cher to go on the trip?
Leanne and Janine are planning a trip to Padre Island, Texas, during spring break. Members of the varsity volleyball team, they are looking forward to five days of beach volleyball and parasailing. They will drive Leanne’s car and estimate that they will pay the
following costs during the trip:
Motel $625
Food (each) 75
Gas (total) 50
Parasailing & equipment rental 125
They have reservations at the Beach-Vue Motel, which charges $95 per night for a single, $125 per night for a double, and an additional $20 per night if a rollaway bed is
added to a double room.
Leanne’s little sister, Cher, wants to go along. She isn’t into sports but thinks that
five days of partying and relaxing on the beach would be a great way to unwind from
the rigors of school. She figures that she could ride with Leanne and Janine and share
their room.
Required:
1. Using incremental costs only, what would it cost Cher to accompany Leanne and
Janine?
2. Using the benefits-received method, what would it cost Cher to go on the trip?
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