Apex Engineering purchased a compressor for $5,000 three years ago that have been sitting in storage. They decided to repackage it and resell it to another smaller firm. It would cost $150 for them to repair and repackage the old compressor. A newer model of the compressor cost $7,500 and similar comparable compressor cost $3,500. 

What is the sunk cost for the company?

Answer rating: 100% (QA)

SOLUTION The sunk cost for the company is the original purchase price of the compressor which is 5000 This cost has already been incurred and cannot b... View the full answer