Question: ABC Electronics has been manufacturing a gadget for the past 3 years. However, due to declining sales and increased competition, the company is now evaluating

ABC Electronics has been manufacturing a gadget for the past 3 years. However, due to declining sales and increased competition, the company is now evaluating whether it should continue or discontinue production.
ABC Electronics has a 5-year contract for renting the factory space where the gadgets are made. The company must pay $100,000 per year for this lease, regardless of whether they continue production.
Is this avoidable or unavoidable costs?

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