# Travel Expense Assignment

E4-2 Time allowed: 20 minutes Bill has just returned from a duck hunting trip. He has brought home eight ducks. Bill&#39;s friend, John, disapproves of duck hunting and, to discourage Bill from further hunting, John has presented him with the following cost estimate per duck: Camper and equipment: Cost, £12,000; usable for eight seasons; 10 hunting trips per season Travel expense (pickup van): £150 100 miles at £0.12 per mile (petrol, oil, and tires- 20.07 per mile:

depreciation and insurance-£0.05 per mile) 12 20 Shotgun shells (two boxes) Boat: 29 Cost, £2,320, usable for eight seasons; 10 hunting trips per season Hunting license: Cost, £30 for the season; 10 hunting trips per season Money lost playing poker: Loss, £18 (Bill plays poker every weekend) 18 A fifth of Old Grandad: 8 Cost, £8 (used to ward off the cold) £240 Total cost E30 Cost per duck (£240/8 ducks) Required 1 Assuming that the duck hunting trip Bill has just completed is typical, what costs are relevarnt to a decision as to whether Bill should go duck hunting again this season? 2 Suppose that Bill 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? Which costs are relevant in a decision of whether Bill should give up 3 hunting? Explain. Get Accounting homework help today

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