Question
A firm had to pay $15,000 one year ago to a landlord to open a business in a retail space.The $15,000 is non-refundable.Each month the
A firm had to pay $15,000 one year ago to a landlord to open a business in a retail space.The $15,000 is non-refundable.Each month the firm must pay rent, insurance, and salary expenses of $60,000, an amount that does not change.Last month the firm's total costs were $100,000.Which of the following statements is correct?
Group of answer choices
The firm's total fixed cost is $60,000, its total variable cost is $40,000, and its sunk cost is $115,000.
The firm's total fixed cost is $40,000, its total variable cost is $60,000, and its sunk cost is $100,000.
The firm's total fixed cost is $15,000, its total variable cost is $40,000, and its sunk cost is $100,000.
The firm's total fixed cost is $15,000, its total variable cost is $60,000, and its sunk cost is $40,000.
The firm's total fixed cost is $60,000, its total variable cost is $40,000, and its sunk cost is $15,000.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started