a manager invests $400,000 in a technology that should reduce the overall costs of production. the company…

a manager invests $400,000 in a technology that should reduce the overall costs of production. the company managed to reduce their cost per unit from $2 to $1.85. after the investment has been made, the $400,000 investment is\n\nconsidered sunk costs, not relevant in further decision making\n\nconsidered sunk costs, but still relevant in further decision making\n\nconsidered a loss\n\nconsidered a profit

a manager invests $400,000 in a technology that should reduce the overall costs of production. the company managed to reduce their cost per unit from $2 to $1.85. after the investment has been made, the $400,000 investment is\n\nconsidered sunk costs, not relevant in further decision making\n\nconsidered sunk costs, but still relevant in further decision making\n\nconsidered a loss\n\nconsidered a profit

Answer

Brief Explanations:

A sunk cost is a cost that has already been incurred and cannot be recovered. The $400,000 investment has been made and cannot be retrieved. Future decisions should be based on incremental costs and benefits, not on past - already - spent costs. So, it is not relevant for further decision - making.

Answer:

Considered sunk costs, not relevant in further decision making