Suppose the Stiles Trading Company has an empty warehouse in Philadelphia that can be used to store a new line of electronic pinball machines. The company hopes to sell these machines to affluent northeastern consumers. Should the warehouse be considered a cost in the decision to sell the machines?

The answer is yes. The company could sell the warehouse if the firm decides not to market the pinball machines. Thus, the sales price of the warehouse is an opportunity cost in the pinball machine decision.