Question: XYZ , Inc. is considering adding a product line that would utilize floor space in their manufacturing plant which is currently used for storage. XYZ
XYZ Inc. is considering adding a product line that would utilize floor space in their manufacturing plant which is currently used for storage. XYZ will need to rent new storage space elsewhere. The floor space would be considered an
variable cost.
sunk cost.
opportunity cost.
irrelevant cash flow.
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