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Robin purchased a used automobile for $1,800 cash at the beginning of last year. He works in the city and drives his car to work,

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Robin purchased a used automobile for $1,800 cash at the beginning of last year. He works in the city and drives his car to work, therefore he pays a fee to park in the garage at work. Robin was recently stranded when his automobile broke down on the 101, so he is thinking about selling his old car and buying a more reliable car. He would drive the same number of miles with cither car and would rent the same parking place at no change in rent. The new car will require premium gasoline so gasoline cost will increase for the new car. Because the value of the new car is higher, insurance, license and taxes will increase. Robin will also have a loan payment on the new car. Required: For each of the following costs, indicate the type of cost (avoidable, incremental, sunk, opportunity, unavoidable). Then indicate whether each cost is relevant or not relevant to the decision by selecting the correct answer from the dropdown box next to the cost. Robin purchased a used automobile for $1,800 cash at the beginning of last year. He works in the city and drives his car to work, therefore he pays a fee to park in the garage at work. Robin was recently stranded when his automobile broke down on the 101, so he is thinking about selling his old car and buying a more reliable car. He would drive the same number of miles with either car and would rent the same parking place at no change in rent. The new car will require premium gasoline so gasoline cost will increase for the new car. Because the value of the new car is higher, insurance, license and taxes will increase. Robin will also have a loan payment on the new car. Required: For each of the following costs, indicate the type of cost (avoidable, incremental, sunk, opportunity, unavoidable). Then indicate whether each cost is relevant or not relevant to the decision by selecting the correct answer from the dropdown box next to the cost

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