Question 17

Note that data typically changes for each new question, even when the same company or product name is used.

Tigard, Inc. is reducing the sales price of it's smart television, which was originally $375 per unit. Units currently in work in process inventory have production costs of $305 per unit, and they can be sold for $200 per unit. Another option is to do additional work on these units for $20 per unit so they can be sold for $250 per unit.

Which of the following amounts is a sunk cost in this problem?

a) $305 per unit work in process production cost

b) $200 per unit work in process inventory sales price

c) $375 per unit original sales price

d) $20 per unit additional processing cost