Lovelace Company is considering remodeling its luxury resort rental property. Lovelace believes that such a remodel will increase the daily rental fees that Lovelace can collect. Part of the remodel will involve removing and replacing all of the existing floor coverings. In the analysis used in deciding whether to do this remodel, which label is given to the original cost of buying and installing the existing floor coverings?

Overhead cost

Sunk cost

Variable cost

Opportunity cost

Managerial cost