Identifying Relevant and Irrelevant Costs Sarah Ramirez
Identifying Relevant and Irrelevant Costs Sarah Ramirez is considering taking a part-time job at…
Identifying Relevant and Irrelevant Costs Sarah Ramirez is considering taking a part-time job at a local clothing store. Sarah loves the store and shops there often, but unfortunately, employee discounts are given only to full-time employees. If Sarah takes this job, she will have to withdraw from her Tuesday night basket-weaving class to work. Accepting the job would also mean that Sarah must give up her volunteer work at the local animal sanctuary, an activity that she enjoys a great deal. The new job would pay approximately $125 per week but would cost Sarah $15 per week in gas. Sarah would be able to keep her Saturday afternoon job at the library that pays $40 per week.
A list of factors that Sarah has identified follows. For each one, indicate whether it is relevant or irrelevant to Sarah’s decision.
- The $125 income from the new job.
- The $40 income from the library.
- The $50 nonrefundable registration fee Sarah paid for the basket-weaving class.
- The $15 cost for gas.
- The $75 per month that Sarah spends for clothing.
- The time Sarah spends volunteering at the animal sanctuary.