Question - Bob has just returned from a duck hunting trip. He has brought home eight ducks. Bob friend, Jill, disapproves of duck hunting, and to discourage Bob from further hunting, Jill has presented him with the following cost estimate per duck:
Camper and equipment: Cost, $19,800; usable for eight seasons; 10 hunting trips per season$247.50
Travel expense (pickup truck): 100 miles at $0.38 per mile (gas, oil, and tires-$0.20 per mile; depreciation and insurance -$0.18 per mile) 38.00
Shotgun shells (two boxes) 20.00
Boat: Cost, $2,720, usable for eight seasons; 10 hunting trips per season 34.00 Hunting license: Cost, $70 for the season; 10 hunting trips per season 7.00
Money lost playing poker: Loss, $32 (Bob plays poker every weekend) 32.00
Bottle of whiskey: Cost, $25 (used to ward off the cold) 25.00
Total cost$403.50 Cost per duck ($403.50 ÷ 8 ducks)$50.44
Required:
1. Assuming that the duck hunting trip Bob has just completed is typical, what costs are relevant to a decision as to whether Bob should go duck hunting again this season?
2. Suppose that Bob gets lucky on his next hunting trip and shoots 10 ducks in the amount of time it took him to shoot 8 ducks on his last trip. How much would it have cost him to shoot the last two ducks?