Assume that you are trying to decide between watching a movie at the local theatre or renting a movie at home and watching it on your own television. After watching the movie at your chosen venue, you plan to order a pizza to be delivered to your home. Regarding the decision at hand, the cost of renting a movie at home is a: Multiple Choice sunk cost differential cost future cost that does not differ between the alternatives joint cost Assume a retailing company has two departments-Department A and Department B. The company's most recent contribution format income statement follows: Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) Total $800.000 320.000 480,000 400.000 $ 80,000 Department A $350,000 120.000 230.000 140,000 $ 90,000 Department B $450,000 200.000 250.000 260.000 $(10,000) The company says that $140,000 of the fixed expenses being charged to Department Bare sunk costs or allocated costs that will continue if the segment is discontinued. However, if Department B is discontinued the sales in Department A will drop by 10%. What is the financial advantage (disadvantage) of discontinuing Department B? Which of the following capital budgeting methods computes the discount rate at which the net present value of an investment project is zero? Multiple Choice The net present value method The simple rate of return method The payback method The internal rate of return method