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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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