Question

Hi-Tech Inc. has several outdated computers that cost a total of $17,800 and could be sold as scrap for $4,600.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

Answer 1

c.$17,800

Step-by-step 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.