Chang Industries has 1,400 defective units of product that already cost $46 each to produce. A salvage company will purchase the defective units as is for $21 each. Chang's production manager reports that the defects can be corrected for $38 per unit, enabling them to be sold at their regular market price of $37. The $46 per unit is a: Multiple Choice Incremental cost. ) Opportunity cost. Period cost. Sunk cost. Out-of-pocket cost