10. You are considering whether to prepare and pack your lunch to school each day or to buy lunch each day at the cafeteria. List two costs that are relevant to your decision. 11. What is the definition of an avoidable cost? What is the definition of a sunk cost? I 12. A company is considering discontinuing one of its product lines. Given information about the product line is shown below: Contribution margin $700,000 Fixed expenses $950,000 Net operating loss (250,000) Page 2 If this product line is dropped, 65% of the fixed expenses can be eliminated. Should the product line be retained or dropped? What is the financial advantage (or disadvantage) of discontinuing the product line? Show your calculations.