contestada

Garrison Boutique, a small novelty store, just spent $4,000 on a new software program that will help in organizing its inventory. Due to the steep learning curve required to use the new software, Garrison must decide between hiring two part-time college students or one full-time employee. Each college student would work 20 hours per week, and would earn $15 per hour. The full-time employee would work 40 hours per week and would earn $15 per hour plus the equivalent of $2 per hour in benefits. Employees are given two polo shirts to wear as their uniform. The polo-shirts cost Garrison $10 each. What are the sunk costs for Garrison?

Respuesta :

jepessoa

Answer:

the $4,000 spent on a new software

Explanation:

Sunk costs are costs that the business has already incurred and they cannot be recovered no matter what decision they make.

in this case, the company must decide whether to hire 2 part time employees or only on full time employee. But no matter which decision they make, the money spent on the new computer software cannot be recovered. That is why the money spent on the new software is considered a sunk cost.

Otras preguntas