Identify which of the costs below are relevant or irrelevant (sunk costs) for a decision to establish a restaurant. Give reasoning for your answer.

YALLA MOMOS INCOME STATEMENT FOR THE YEAR ENDING 2015 (IN AED) Amount in AED 504,000 151,200 352,800 Particulars Net Revenue Cost of Food sales Gross Profit Operating Expenses Rent Salaries Administrative costs Depreciation Utilities Miscellaneous expenses Advertisement costs Operating Profit Interest Net Profit 68,000 54,000 23,000 30,200 13,000 15,800 0 148,800 13,000 135,800 Note: AED - United Arab Emirates (Emirati) Dirham; US$1 = AED3.67 on April 30, 2016. Source: Created by the authors based on company data