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24 February, 16:46

Hi-Tech Inc. has several outdated computers that cost a total of $17,800 and could be sold as scrap for $4,600.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.$9,000b.$2,400c.$17,800d.$20,200

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  1. 24 February, 16:57
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    c.$17,800

    Explanation:

    Sunk cost is a term that refers to money that has been spent and cannot be recovered or recouped.

    $17,800 that was used by Hi-tech to purchase computers cannot be recovered. So, it is the sunk cost.
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