Chapter 9, Problem 3P

To determine

To answer:

The questions based on the given situations

Concept Introduction:

Sunk cost: The sunk costs are defined as the costs that have been already made; the sunk costs cannot be recovered or refunded for example the costs made on office furniture, computers, and salaries of employees.

Opportunity Cost: The opportunity cost is defined as the next best activity forgone, that is if you want to gain something you need to forgone something at the same time