Starshine Products is considering the launch of a new line of dolls that would use an assembly

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Starshine Products is considering the launch of a new line of dolls that would use an assembly line that currently has some spare capacity. Some Starshine executives argued that because the assembly line was already paid for, its cost was sunk and should not be included in the project evaluation. Others argued that the assembly line was a scarce resource and should be priced accordingly. What cost should Starshine assign to use of the excess assembly line capacity?
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Corporate Finance Core Principles and Applications

ISBN: 978-0077905200

3rd edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford

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