The Martin Car Company Is Considering Whether to Continue to Make

question 1

Multiple Choice

The Martin Car Company is considering whether to continue to make the tires for its cars, or to buy tires from Swift Corp. Which of the following would be considered a "sunk cost" with regard to this decision?

• A) The cost per unit it would pay to buy tires from Swift Corp
• B) The costs it had incurred two years ago to design its own tires
• C) The variable labor costs it incurs in making its own tires
• D) The labor costs it incurs in making its own tires

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Definitions:

Less Formal Sports

Informal or recreational physical activities that are typically less structured than competitive sports, focusing more on enjoyment and participation than on winning.

Organized Sports

Organized sports are structured physical activities governed by rules and often involving teamwork, typically led by a coach.

Competition

Rivalry between individuals, teams, or entities aimed at achieving superiority or winning in a specific field or over a particular task.

Professional Athletes

Professional athletes are individuals who receive payment for their athletic performance and compete in organized sports.