In early July, Colin Marks purchased a $70 ticket to the December 15 game of the
ID: 2523266 • Letter: I
Question
In early July, Colin Marks purchased a $70 ticket to the December 15 game of the Sarasota Shippers. Parking for the game was expected to cost approximately $22, and Marks would probably spend another $15 for a souvenir program and food. It is now December 14. The Shippers were having a miserable season and the temperature was expected to peak at 5 degrees on game day. Marks therefore decided to skip the game and took his wife to the movies, with tickets and dinner costing $50. The sunk cost associated with this decision situation is:
$70.
$20.
$50.
$107.
None of the answers is correct.
$70.
$20.
$50.
$107.
None of the answers is correct.
Explanation / Answer
Sunk cost is the cost which has already been incurred and paid for. Sunk cost in the given situation is $70 Option 1 is correct