ACC 202 VERSION A 1). A cost that is not affected by later decisions is called an) a. relevant cost. b. historical cost. e. opportunity cost. d. sunk cost. Use the following information to answer the next two questions Baltimore Inc. has the capacity to produce 10,000 bicycles per year. Baltimore Inc. currently produces and sells 7,000 units per year. The bicycles normally sell for $100 each. Detroit Products has offered to buy 2,000 bicycles from Baltimore Inc. for $50 each. Variable costs associated with manufacturing each bicycle are $15 for direct labor and $40 for direct materials.Fixed costs are $195,000 2. What is Baltimore Inc.'s current net profit? a. $115,000 b. $120,000 c $200,000 d. $315,000 3 How much would profit increase (decrease) if Baltimore Inc. accepted this special order? a. $10,000 b. $112,000 c. ($10,000) d. ($112,000) Use the following information to answer the next question. Based on the segment income statement below, Deli is considering eliminating its Pizza line. $100,000 (10,000) Revenue from Pizza sales Salaries for Pizza workers Direct material costs for Pizza (30,000) Sunk costs (equipment depreciation) (75,000) Net loss (15,000) 4. The total irrelevant costs in this decision add up to a. $100,000. b. $75,000. c. $40,000. d. $15,000