When looking at the expenses necessary to run the Craddock cup, which of them are variable and which are fixed? For the cost identified as variable, on what bases are they variable? Identify the driver of the cost.

a) consider the concept of sunk costs and the rationale behind including or excluding such costs in determining whether Jose should keep it drop the tournament.

b) what costs are irrelevant to his decision ( costs that will be incurred even if the tournament does not continue?