Question $7$

$2$ pts

Bison Industries has $2,000$ defective units of product that already cost $$14$ each to produce. A salvage company will purchase the defective units as is for $$5$ each. Chang's production manager reports that the defects can be corrected for $$6$ per unit, enabling them to be sold at their regular market price of $$21.$ The $$14$ per unit is a:

Incremental cost.

Opportunity cost.

Out$-$of$-$pocket cost.

Sunk cost.

Period cost.