erek Dingler conducts corporate training seminars on managerial accounting techniques all around the country. An pcoming training seminar is to be held in Philadelphia. Just rior to that engagement, Derek will be in New York City. He lans to stay in Philadelphia the night of the seminar, as the ext morning he plans to meet with clients about future aining seminar possibilities. One travel option is to fly from lew York to Philadelphia on the first flight on Friday horning, which will get him to Philadelphia two hours before he start of his seminar. The cost of that flight is $287. Uber ees for his time in Philadelphia will cost $68. His meal per iem is $40 for each full day and $25 for each half day. The otel cost is $225 per night. His second option is to rent a car nd drive the two hours to Philadelphia from New York City he afternoon before the seminar. The cost of the rental car mcluding gas is $57 per day and the car will be needed for wo full days. At the end of the meetings he will return to ew York City. What are the relevant costs that Derek Dingler has to onsider in making the decision whether to fly or drive from lew York City to Philadelphia?
erek Dingler conducts corporate training seminars on managerial accounting techniques all around the country. An pcoming training seminar is to be held in Philadelphia. Just rior to that engagement, Derek will be in New York City. He lans to stay in Philadelphia the night of the seminar, as the ext morning he plans to meet with clients about future aining seminar possibilities. One travel option is to fly from lew York to Philadelphia on the first flight on Friday horning, which will get him to Philadelphia two hours before he start of his seminar. The cost of that flight is $287. Uber ees for his time in Philadelphia will cost $68. His meal per iem is $40 for each full day and $25 for each half day. The otel cost is $225 per night. His second option is to rent a car nd drive the two hours to Philadelphia from New York City he afternoon before the seminar. The cost of the rental car mcluding gas is $57 per day and the car will be needed for wo full days. At the end of the meetings he will return to ew York City. What are the relevant costs that Derek Dingler has to onsider in making the decision whether to fly or drive from lew York City to Philadelphia?
Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 2EA: Derek DingIer conducts corporate training seminars on managerial accounting techniques all around...
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