Assume that you have decided to drive your car to Florida for the spring break. A classmate learns about your plans and asks about riding along with you. Required: Select how you would apply each of the following cost concepts to the task of determining how much, if any, cost you would take into consideration for the purposes of setting a price to be charged for taking the classmate with you.

• How to allocate? Based on number of people, weight, number of suitcases, or what?
• What are other opportunities for you to earn revenue? What is the cost of alternative travel for your classmate?
• What costs have already been incurred and cannot be recovered, even if you don't make the trip
• What costs will differ if a friend comes along?

a. differential cost

b. allocated cost

c. sunk cost

d. opportunity cost