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Some $4$ Foil

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Thornton industries has $2,100$ defective units of product that already cost $$16$ each to produce. A salvage company will purchase the defective units as is for $$5$ each. Thornton's production manager reports that the defects can be corrected for $$ per unit, enabling them to be sold at their regular market price of $$22.$ The $$16$ per unit is a:

Multiple Choice

Out$-$of$/$pocket cont.

Opportunity cost.

Incremental cost.

Sunk cost.

Period cont.