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April 24, 2014

Homework Help: college

Posted by G on Friday, August 20, 2010 at 6:49am.

RNO Company's market for the Model 55 has changed significantly, and RNO has had to drop the price per unit from $265 to $125. There are some units in the work in process inventory that have costs of $150 per unit associated with them. RNO could sell these units in their current state for $100 each. It will cost RNO $10 per unit to complete these units so that they can be sold for $125 each.

Which of the following is the amount of sunk costs in this problem?
A) $150 per unit
B) $125 per unit
C) $10 per unit
D) $265 per unit

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