In early July, James Bluth purchased a $70 ticket to the December 15 game of the
ID: 2457389 • Letter: I
Question
In early July, James Bluth purchased a $70 ticket to the December 15 game of the Chicago Titans; the Titans belong to the Midwest Football League and play their games outdoors on the shore of Lake Michigan. Parking for the game is expected to cost approximately $22, and James would probably spend another $15 for a souvenir program and food. It is now December 14. The Titans were having a miserable season and the temperature is expected to peak at 5 degrees on game day. James is thinking about skipping the game and taking his wife to the movies and dinner, at a cost of $50. The amount of sunk cost in Morrison's decision to spend some time with his wife is:
$0Explanation / Answer
The option is option - B.
That is $70. Because sunk are already incurred cost and which can be recovered. So, here the purchase of ticket will be sunk cost.