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diamong [38]
2 years ago
8

After purchasing a coffee cup from your local gas station for $5.00, you can always refill your cup for $0.50. The sunk cost of

the coffee purchased at the gas station is___________
Business
1 answer:
Law Incorporation [45]2 years ago
3 0

Answer:

$4.50

Explanation:

The sunk cost is the cost that has been incurred and is unrecoverable in the process of taking a financing decision.

If the cost of a coffee cup from a local gas station cost $5.00 and the cost of refill is $0.50, the coffee is the actual element needed and from the refill, it can be estimated that it costs $0.50.

Hence the sunk or unrecoverable cost is the difference between the coffee cup and the refill cost

= $5.00 - $0.50

= $4.50

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