Household Helpers currently sells 12,000 sets of basic hand tools per year. The sales price per set is $99 and the variable cost per set is $64. The firm has annual fixed expenses of $260,000, annual depreciation of $75,000, and a tax rate of 34 percent. The firm is considering expanding into household cleaners. If this expansion occurs, the firm expects to sell 5,000 sets of householder cleaners at a selling price per unit of $29 and a variable cost per unit of $12. The depreciation expense would increase by $10,000 and the fixed costs would remain constant. The firm spent $187,000 to develop the chemical formulas for the household cleaners. If the household cleaners are introduced, the firm expects the sales of its current tool sets to increase to 12,400 sets per year. Which one of the following is the best example of a sunk cost? Multiple Choice $260,000 fixed costs $187,000 development cost tax expense $64 variable cost per set of hand tools