Bill has just returned from a duck hunting trip. He brought home eight ducks. Bill's friend, John, disapproves of duck hunting, and todiscourage Bill from further hunting, John presented him with the following cost estimate per duck:Camper and equipment:Cost, $12,000; usable for eight seasons; 14 hunting trips per seasonTravel expense (pickup truck):100 miles at $0.40 per mile (gas, oil, and tires-$0.22 per mile;depreciation and insurance-$0.18 per mile)Shotgun shells (two boxes per hunting trip)$1074030Вoat:Cost, $2,480, usable for eight seasons; 14 hunting trips per seasonHunting license:Cost, $50 for the season; 14 hunting trips per seasonMoney lost playing poker:Loss, $28 (Bill plays poker every weekend whether he goes hunting or staysat home)Bottle of whiskey:Cost, $20 per hunting trip (used to ward off the cold)2242820Total cost2$251Cost per duck ($251 ÷ 8 ducks)$31Required:1. Assuming the duck hunting trip Bill has just completed is typical, what costs are relevant to a decision as to whether Bill should goduck hunting again this season?2. Suppose Bill gets lucky on his next hunting trip and shoots 14 ducks using the same amount of shotgun shells he used on hisprevious hunting trip to bag 8 ducks. How much would it have cost him to shoot the last six ducks?O O Required 1Required 2Suppose Bill gets lucky on his next hunting trip and shoots 14 ducks using the same amount of shotgun shells he used on hisprevious hunting trip to bag 8 ducks. How much would it have cost him to shoot the last six ducks?Cost of last six ducks

Required: 1. Assuming the duck hunting trip Bill has just completed is typical, what costs are relevant to a decision as to whether Bill should go duck hunting again this season? 2. Suppose Bill gets lucky on his next hunting trip and shoots 14 ducks using the same amount of shotgun shells he used on his previous hunting trip to bag 8 ducks. How much would it have cost him to shoot the last six ducks?

Required: 1. Assuming the duck hunting trip Bill has just completed is typical, what costs are relevant to a decision as to whether Bill should go duck hunting again this season? 2. Suppose Bill gets lucky on his next hunting trip and shoots 14 ducks using the same amount of shotgun shells he used on his previous hunting trip to bag 8 ducks. How much would it have cost him to shoot the last six ducks?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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 $0.38 per mile (gas, oil, and tires-$8.26 per mile; depreciation and insurance-50.12 per mile) Shotgun shells (two boxes per hunting trip) Boat: Cost, $2,080, usable for eight seasons; 14 hunting trips per season Hunting License: Cost, $40 for the season; 14 hunting trips per season Money lost playing poker: Loss, $36 (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 ($244 + 8 ducks) Complete this question by entering your answers in the tabs below. Camper and equipment Travel expense Shotgun shells…
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