Question

M7-3 Identifying Relevant and Irrelevant Costs [LO 7-2] Isabella Canton is considering taking a part-time job at a local clothing store. She loves the store and shops there often, but unfortunately, employee discounts are given only to full-time employees. If Isabella takes this job, she would have to withdraw from her Tuesday night basket-weaving class to work. Accepting the job would also mean that Isabella 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 Isabella $15 per week in gas. Isabella would be able to keep her Saturday afternoon job at the library that pays $40 per week. A list of factors that Isabella has identified follows. For each one, indicate whether it is relevant or irrelevant to Isabella's decision. 1. 2. 2 The $125 income from the new job. The $40 income from the library The $50 nonrefundable registration fee Isabella paid for the basket-weaving class. The $15 cost for gas. The $75 per month that Isabella spends for clothing. The time Isabella spends volunteering at the animal sanctuary. Irrelevant Relevant

Answer 1

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	The classification is given below:
1	Relevant
2	Irrelevant
3	Irrelevant
4	Relevant
5	Irrelevant
6	Relevant