Use the Following Information for Questions

question 17

Multiple Choice

Use the following information for questions
Hi-Tech Inc. has several outdated computers that cost a total of $17,800 and could be sold as scrap for $4,600. They could be updated for an additional $2,400 and sold. If Hi-Tech updates the computers and sells them, net income will increase by $9,000.
-What amount would be considered sunk costs?

• A) $2,400
• B) $9,000
• C) $17,800
• D) $20,200

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Definitions:

Minimum Cost

The lowest possible expense incurred in the production or acquisition of goods or services without compromising quality.

Shipping Solution

A system or service that simplifies the process of sending goods from one place to another.

Objective Function

A mathematical expression that defines the goal of an optimization problem, often involving the maximization or minimization of some quantity.

Distribution Network

A system of storage facilities and transportation logistics that moves goods from manufacturers to consumers.