Page 137 - 5.2 i. Manac Costing ITC Summarised Notes
P. 137

DECISION MAKING




            Basic example



            Cost to drive to Durban:


            Petrol                       R1 400


            Tolls                        R300



            Total cost                   R1 700





            Cost to fly to Durban:


            Air ticket                   R1 800





            The car insurance is not relevant as it is not avoidable

            (it is the same for both alternatives).






            Difference in favour of driving R100.


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