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Sunk cost

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Which one of the following is an example of a sunk cost?

1. $1500 of lost sales because an item was out of stock
2. $1200 paid to repair a machine last year
3. $20000 project that must be forfeited if another project is accepted
4. $4500 reduction in current dress sales if a store starts selling coats
5. $1800 increase in comic book sales if a store commences selling puzzles

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Solution Summary

The solution explains which cost is a sunk cost from the given alternatives

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