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The cost of unused facility rent identified in the preceding step is not the minimum rate that Spear should charge for the use of the
The cost of unused facility rent identified in the preceding step is not the minimum rate that Spear should charge for the use of the space. The facility rent is a variable cost, which is not sunk, and should have no bearing in the decision to sublet the space. Any amount of rent that Spear could bring in would be beneficial. Before subletting the space, though, Spear 's management should look at possible future increases in their own production. Sould i choose fixed cost, which is sunk
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