Steve has just returned from salmon fishing. He was lucky on this trip and brought home 2 salmon. Steve’s wife, Wendy, disapproves of fishing, and to discourageSteve 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 peryear.Cost per fishing trip:Depreciation on fishing boat* (annual depreciation of $1,700 ÷ 10 trips)$170Boat storage fees (annual rental of $1,700 ÷ 10 trips)170Expenditures on fishing gear, except for snagged lures(annual expenditures of $210 ÷ 10 trips)21Snagged fishing lures7Fishing license (yearly license of $80 ÷ 10 trips)8Fuel and upkeep on boat per trip28Junk food consumed during trip5Total cost per fishing trip$409Cost per salmon ($409 ÷ 2 salmon)$204.50*The original cost of the boat was $17,000. It has an estimated useful life of 10 years, after which it will have no resale value. The boat does notwear out through use, but it does become less desirable for resale as it becomes older.Required:1.Assuming that the salmon fishing trip Steve has just completed is typical, what costs are relevant to a decision as to whether he should go on anothertrip this year? (Omit the "$" sign in your response.)Total relevant cost$2.Suppose that on Steve’s next fishing trip he gets lucky and catches three salmon in the amount of time it took him to catch two salmon on his lasttrip. How much would the third salmon have cost him to catch? (Leave no cells blank - be certain to enter "0" whereverrequired. Omit the "$" sign in your response.)Cost of third salmon$


Are there any questions left?
New questions in the section Business
Sign up for the IQClass
Answers from experts with no ads!
Sign up
Develop soft skills on BrainApps
Complete the IQ Test
Made with love
This website uses cookies to make IQClass work for you. By using this site, you agree to our cookie policy

Pleased to see you again

IQClass unlocks the learning potential of every child
  • Master useful skills
  • Improve learning outcomes
  • Share your knowledge
Create an account
Sign in
Recover lost password
Or log in with

Create an account

IQClass unlocks the learning potential of every child
  • Master useful skills
  • Improve learning outcomes
  • Share your knowledge
Create an account
Sign Up
Or sign up with
By signing up, you agree to the Terms of use and Privacy policy.
Looking for an answer to a question you need help with?
you have баллов