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At the beginning of the year, Swifty Inc. is considering whether to repair and retain...

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Accounting

At the beginning of the year, Swifty Inc. is considering whether to repair and retain an existing machine, or to replace it with a new machine. The following information is available to analyze this decision
Machine overhaul cost (last year) $7000
Repair costs (current year)2700
Annual operating costs (existing machine)15300
Annual operating costs (new machine)10500
Which of the costs being considered for this decision represents a sunk cost
a. $7000 of Machine over haul costs (last year)
b. $2700 of repair costs (current year)
c. $10500 of annual operating costs (new machine)
d. $15300 of annual operating costs (existing machine)

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