[silke13]

Steve has returned from a fishing trip with 2 salmon. His wife discourages him to go on fishing trips and presents him with the following data. The cost per fishing trip is based on an averge of 10 trips per year.
Depreciation on fshing boat (ann. Depr. Of $1500 div. by 10 trips) $150
Boat storage fees ( annual rent of $1200 div. by 10 trips) $ 120
Expenditure on fishing gear except snagged lures (annual exp. 200 div by 10 trips)
$20
Snagged fishing lures $7
Fishing license (yearly $40 div by 10 trips) $4
Fuel and upkeep on boat per trip: $25
Junk food consumed furing trip: $8
Total cost: $334
Cost per salmon: $167
The original boat was $15000. It has an estimated life of 10 years, after which it will have no resale value. The boat does not wear and tear out through use, but it does become less desirable for resale as it becomes older.
What are the relevant cost to decide as to whether Steve should go on another trip this year?

[ma0641]

Well what do you think, we don't do your homework but may add information .

[rehmanvohra]

Relevant costs are those costs that will be incurred if the decision to go on the fishing trips is taken.

[ma0641]

Yes