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We decide to add home delivery to our pizzeria. The pizzeria currently owns a car and will use it for delivery but is leasing it

We decide to add home delivery to our pizzeria. The pizzeria currently owns a car and will use it for delivery but is leasing it out for $150/month. We estimate that our delivery business will generate $4,000/month in profit, but our take-out and eat-in profit will drop by $1,500. The loss of rental income should be classified as:

a.

sunk cost

b.

opportunity cost

c.

salvage value

d.

cannibalization

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