Harbourline Logistics is offered a six-month delivery contract worth 30,000. Taking it would require extra driver wages of 18,000 and extra fuel of 4,000. The truck to be used is already owned and will be depreciated 6,000 over the period whether or not the contract is taken; the dispatcher’s salary of 48,000 is unchanged either way. If the truck is not used on the contract it could be rented out for 5,000. Complete the differential worksheet.

Answer

Differential revenue → 30000 · Relevant costs (wages + fuel) → 22000 · Opportunity cost → 5000 · Net differential → 3000

Cells - Differential revenue · ±0 - Relevant costs (wages + fuel) · ±0 - Opportunity cost · ±0 - Net differential · ±0 List every line, strike any that is past or the same under both alternatives (depreciation 6,000 and the dispatcher’s 48,000 do not differ), and sum what survives: 30,000 − (18,000 + 4,000) − 5,000 = 3,000. The forgone rental is an opportunity cost, counted once on the accept side. Positive → accept.

Hermanson Vol 2 ch 22 (differential analysis; opportunity cost); Heisinger & Hoyle §7.1, §7.5; OpenStax Accounting v2 §10.1; the Harbourline scenarios are the course’s own