Sales of 25,000 units at $7.20 per unit are made monthly. The unit cost is $5.90. Incremental costs of $1.35 per unit to further process the units will result in the 25,000 units being sold for $8.75 each. Which course of action should the company take? Commit its resources to a different product Sell the units at the current stage of completion (25,000 @ $7.20) Do further processing and sell the units at $8.75 Do further processing on only one-half of the units None of the above Which of the following is a cost incurred as a consequence of a past, irrevocable decision and is not relevant to future decisions? Sunk cost Avoidable costs Opportunity cost Differential cost Opportunity cost Incremental cost A company is currently operating below capacity. The following costs are currently being incurred to make a component for one of a company's current products. The fixed overhead costs are attributable to the company's depreciation and operating costs of machinery that are used company wide for many various projects. Direct Materials $2.00 Direct Labor $3.00 Variable Overhead $1.50 Fixed Overhead $2.00 How much of the above costs could be eliminated if the company decided to go out and purchase the component? $5.00 $6.50 $8.50 None of the above All of the above