TB MC Qu$.10-47($Algo$)$ Chang Industries has...

Chang Industries has $1,200$ defective units of product that already cost $$50$ each to produce. A salvage company will purchase the defective units as is for $$23$ each. Chang's production manager reports that the defects can be corrected for $$42$ per unit, enabling them to be sold at their regular market price of $$39.$ The $$50$ per unit is a:$$

Multiple Choice

Incremental cost.

Sunk cost.

Out$-$of$-$pocket cost.

Opportunity cost.

Period cost.