Jim Ohlson is leaving tomorrow for a three day business trip to Chicago and is trying...

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Finance

Jim Ohlson is leaving tomorrow for a three day business trip toChicago and is trying to decide the most economical way to get toand from the airport and his home. Jim could either drive (usinghis own car) or take the shuttle. If Jim drives, then he estimatesthat it will cost $0.30 per mile driven in operating costs (e.g.,for oil and gas) and $7.50 per day for parking. The one-way cost ofthe shuttle is $25. Jim’s home is exactly 30 miles from theairport.
Required:
What are the controllable costs for Jim’s decision? Write downthe magnitude of the controllable costs for both decisionoptions.

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Controllable costs are costs that can be directly regulated by the decision makers while Uncontrollable costs are not under direct influence of decision See Answer

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Jim Ohlson is leaving tomorrow for a three day business trip toChicago and is trying to decide the most economical way to get toand from the airport and his home. Jim could either drive (usinghis own car) or take the shuttle. If Jim drives, then he estimatesthat it will cost $0.30 per mile driven in operating costs (e.g.,for oil and gas) and $7.50 per day for parking. The one-way cost ofthe shuttle is $25. Jim’s home is exactly 30 miles from theairport.Required:What are the controllable costs for Jim’s decision? Write downthe magnitude of the controllable costs for both decisionoptions.