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Jodie bought a used van to start her food truck business for $8,000. She then spent $7,000 to repair and decorate it. Jodie's mom insists

Jodie bought a used van to start her food truck business for $8,000. She then spent $7,000 to repair and decorate it. Jodie's mom insists that the business only makes $2,500 per week in revenue which does not cover the cost of the truck. Jodie argues that

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her mother is right and she should quit the food truck business.

the cost of the truck and repairs are variable costs which dictate future business decisions.

the cost of the truck and repairs are sunk costs and her food truck can be profitable.

the cost of the truck and repairs are sunk cost which dictate future business decisions.

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