Question 5 10 pts Dollar General (DG) is considering the elimination of its Packaging Department. Management has received an offer from an outside firm to supply all Dollar General's packaging needs. To help DG in making the decision, DGs president has asked the controller for an analysis of the cost of running DG's Packaging Department. Included in that analysis is $9,100 of rent, which represents the Packaging Department's allocation of the rent on DG's factory building. If the Packaging Department is eliminated, the space it used will be converted to storage space. Currently DG rents storage space in a nearby warehouse for $11,000 per year. The warehouse rental would no longer be necessary if the Packaging Department were eliminated. What type of cost is the $11,000 warehouse rental, from the viewpoint of the costs of the I Packaging Department? sunk cost

Dollar General (DG) is considering the elimination of its Packaging Department. Management has received an offer from an outside firm to supply all Dollar General's packaging needs. To help DG in making the decision, DGs president has asked the controller for an analysis of the cost of running DG's Packaging Department. Included in that analysis is $9,100 of rent, which represents the Packaging Department's allocation of the rent on DG's factory building. If the Packaging Department is eliminated, the space it used will be converted to storage space. Currently DG rents storage space in a nearby warehouse for $11,000 per year. The warehouse rental would no longer be necessary if the Packaging Department were eliminated. What type of cost is the $11,000 warehouse rental, from the viewpoint of the costs of the Packaging Department