Jason is going to play golf this afternoon and has to choose between two different golf...
Jason is going to play golf this afternoon and has to choose between two different golf courses.
The greens fees to play each are both $18, the cart fees at each course is $9.
The Eagle's Ridge course is located 20 miles further away than the Crescent course.
Therefore it will cost approximately an additional $4 in gasoline to play the Eagle's Ridge course.
What are the total relevant costs associated with playing golf at Eagle's Ridge?
the answer is $4, please explain. It asks for total relevant cost, why don't you add all the relevant cost?
Homework Answers
The total relevant costs associated with playing golf at Eagle's Ridge = $4
Relevant costs are the costs which are to be incurred in excess of whether the first option is selected or the second option is selected.
Jason has to choose between Crescent course and Eagle's Ridge course. The greens fees and the cart fees of each course are same, therefore the relevant costs associated with playing golf will be $27 whether Jason plays gold in Crescent course or Eagle's Ridge course. However, the Eagle's Ridge course is located 20 miles further away than the Crescent course which will cost Jason additional $4 in gasoline. Therefore, the total relevant cost will be $4 if Jason decides to play golf at Eagle's Ridge course.
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