What are the sunk costs

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Machine A

Machine B

Incremental Cost  (B - A)

Purchase price

$25,000

$28,000

$3,000

Cash Operating costs

5,000

4,000

(500)

Depreciation of old equip

1,500

1,500

0

The incremental costs are purchase price ($3,000) and cash operating costs ($500). Here is a question for you based on the information in the table. What are the sunk costs, if any, in this situation?

Reference no: EM13852826

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