Identify which of the following cost concepts are relevant in the following situations:

(a) fixed costs,

(b) committed fixed costs,

(c) marginal costs,

(d) differential costs,

(e) opportunity costs, (f)

sunk costs.

1. The factory can either produce 10,000 units for €19,000 or 15,000 units for €30,000.

2. An additional unit of output costs the company €1.20 to produce.

3. Management is considering the sale of an asset, which it had just bought one year ago for €250,000.

4. The managing director has decided to invest excess capital into a project instead of acquiring a new production site.

5. The production line supervisor signed a maintenance contract with an external company for a period of six years.