Oregon Company is considering replacing an old machine that originally cost $95,000. A new machine will cost $900,000, and the old machine can be sold for $25,000. What is the sunk cost in this situation

$ 970,000 are sunk costs.

Explanation:

An old machine     cost $95,000

A new machine cost $900,000,

Old machine can be sold for $25,000

The sunk cost in this situation= $ 900,000 + $ 90,000- $ 25,000= $ 995,000- $ 25,000= $ 970,000

Sunk Cost is the amount that cannot be recovered . In this situation only $ 25,000 can be recovered and $ 970,000 cannot be replaced . This amount will be treated as sunk costs.

The sunk costs are costs that are spent and are irrecoverable .

if it is for a job, then you should learn everything you can about the job, like what does it involve, what qualification is required and how you are the right person for that job. dress appropriately for the interview. get plenty of rest the night before. good luck!

hi there, i would say your answer is:

b. there is a fixed quantity of resources and technology available.

hope that : )