In the following scenario, Jane is a student in this class. This morning, her hair dryer broke and Jane discussed the cost of replacing it with her...

In the following scenario, Jane is a student in this class. This morning, her hair dryer broke and Jane discussed the cost of replacing it with her older brother, Dick. When reading the scenario, note all the costs of replacing the hair dryer.

• Dick: Hi, Jane. What happened to your hair dryer?
• Jane: It broke this morning in the shower. I was multitasking.
• Dick: I really don't think you should use it in the shower. Wal-Mart has some hair dryers on sale for $10.00.
• Jane: $10.60 with sales tax. But I'll have to use my credit card because I don't have any cash, and it will be one year before I pay it off. 
• Dick: If you use your credit card, you will have to pay 19% interest, which will be $2.00 for one year. Maybe you should sign up for a personal finance course.
• Jane: Well, I figure that I will have some extra driving, too. According to Google Maps, Wal-Mart is 10 miles from here and the school is 18 miles. But since Wal-Mart is sort of on the way, it only adds two miles to the round trip.
• [Note: I realize you are not driving to this online class.]
• Dick: That is also about 15 minutes that you cannot talk to your friends. Are you going to drive or will you have our neighbor Mr. Spot drive you? Mr. Spot is cheap and he will charge you $2.00.
• Jane: I prefer to drive.
• Dick: You sure have gotten a lot of use out of the Ford Escort I sold you four years ago.
• Jane: Yes, that was a good $6,500 investment. In another year, I will have gotten five years use and put 100,000 miles on it, and it will still have a $500 resale value. Since I am graduating then, I can use that $500 as a down payment for a new car. With gas at $3.00 per gallon, I'll need to make sure my new car gets 30 miles to the gallon, like this one.
• Dick: What are you doing after school?
• Jane: I am going to work at Joe's Bistro. I now get $8.00 per hour and I am up to 20 hours per week. This little problem with the hair dryer will not affect my work hours.
• Dick: The economy is booming. By the way, I will give you a dollar for the old hairdryer. I might be able to fix it up and use it to dry the new puppy when it rains.
• Jane: Sure. Well, I better get going or I will be late for school.

1. What did the hair dryer cost? Can you come up with at least three different possible costs that you feel could be defended?

2. Are there any additional costs that are not included above that you feel should be included? If you come up with any, state them verbally without including them in your cost computations for part 1. Put another way, do not compute a cost where you do not have sufficient given information in the case to compute it.

IMPORTANT NOTE: