Question: A manager invests $400,000 in a technology that should reduce the overall costs of production. The company managed to reduce their cost per unit from

A manager invests $400,000 in a technology that should reduce the overall costs of production. The company managed to reduce their cost per unit from $2 to $1.85. After the investment has been made, the $400,000 investment is

Considered sunk costs, not relevant in further decision making

Considered sunk costs, but still relevant in further decision making

Considered a loss

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