Depreciation on fishing boat

Reference no: EM131125023

Steve has just returned from salmon fishing. He was lucky on this trip and brought home 2 salmon. Steveâ€^TMs wife, Wendy, disapproves of fishing, and to discourage Steve from further fishing trips, she has presented him with the following cost data. The cost per fishing trip is based on an average of 10 fishing trips per year.

Cost per fishing trip:

Depreciation on fishing boat* (annual depreciation of $1,300 Ã· 10 trips) $ 130

Boat storage fees (annual rental of $1,600 Ã· 10 trips) 160

Expenditures on fishing gear, except for snagged lures

(annual expenditures of $260 Ã· 10 trips) 26

Snagged fishing lures 9

Fishing license (yearly license of $60 Ã· 10 trips) 6

Fuel and upkeep on boat per trip 28

Junk food consumed during trip 9

Total cost per fishing trip $ 368

Cost per salmon ($368 Ã· 2 salmon) $ 184.00

*The original cost of the boat was $13,000. It has an estimated useful life of 10 years, after which it will have no resale value. The boat does not wear out through use, but it does become less desirable for resale as it becomes older.

Required:

1.Assuming that the salmon fishing trip Steve has just completed is typical, what costs are relevant to a decision as to whether he should go on another trip this year? (Omit the $ sign in your response.)

Total relevant cost $

2.Suppose that on Steveâ€^TMs next fishing trip he gets lucky and catches three salmon in the amount of time it took him to catch two salmon on his last trip. How much would the third salmon have cost him to catch?

Reference no: EM131125023

Questions Cloud

Major types of noncovalent interactions that one sees : Major types of noncovalent interactions that one sees again and again in Biochemistry- indicate which interaction or interactions (from The Big Three) each side chain could participate in, based on its structure

Contracting with an overseas customer call center : What do you see as the major advantages and disadvantages with contracting with an overseas customer call center? Is there recent empirical evidence that provides comparisons of the options verses using U.S. workers?

How do these values shape or influence your nursing practice : Define values, morals, and ethics in the context of your obligation to nursing practice. Explain how your personal values, philosophy, and worldview may conflict with your obligation to practice, creating an ethical dilemma.

Create a table of entities and activities : Summer2016 SysDoc1 and SysDoc2 Assignment Buying a Home. The Buyer selects a new home using the Zillow Program, Seller Master file, and Property Tax Master file, Create one file in Excel with two worksheets- Name the first worksheet "Table" and creat..

Depreciation on fishing boat : Steve has just returned from salmon fishing. He was lucky on this trip and brought home 2 salmon. Steveâ€TMs wife, Wendy, disapproves of fishing, and to discourage Steve from further fishing trips, she has presented him with the following cost dat..

How many tally''s for each genotype did you get : How many tally's for each genotype did you get?

Identify the shortest atom to atom contact distance : shortest atom to atom contact distance in the lattice in a metal crystallizes in face-centered cubic lattice with a lattice parameter of 4.20 Å

Ethics and professional conduct in business : Solar Industries develops and produces high-efficiency solar panels. The company has an outstanding $10,000,000, 30-year, 10% bond issue dated July 1, 2011. The bond issue is due June 30, 2040.

Why is this design the best fit for this office situation : Assume you are a supervisor. How would you work within each of these situations with your employees to increase employee motivation? How would your decisions be affected by each person-situation dyad?

User Account

All Pages