Denaro Pays $8 000 Per Month in Rent to Operate

question 157

Multiple Choice

Denaro pays $8 000 per month in rent to operate a health club in Saskatoon.He also pays $17 000 per month in wages,$3 000 per month in food and supplies,and $1 000 per month in insurance.All of his costs of production,except his insurance and rent,can change if he makes different decisions about his health club production.Denaro's monthly sunk costs equal:

• A) $20 000.
• B) $11 000.
• C) $29 000.
• D) $9 000.

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Definitions:

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