Asked by G
RNO Company's market for the Model 55 has changed significantly, and RNO has had to drop the price per unit from $265 to $125. There are some units in the work in process inventory that have costs of $150 per unit associated with them. RNO could sell these units in their current state for $100 each. It will cost RNO $10 per unit to complete these units so that they can be sold for $125 each.
Which of the following is the amount of sunk costs in this problem?
A) $150 per unit
B) $125 per unit
C) $10 per unit
D) $265 per unit
Which of the following is the amount of sunk costs in this problem?
A) $150 per unit
B) $125 per unit
C) $10 per unit
D) $265 per unit