The Heart-Warming Hotel is a four-star hotel located in the heart of downtown Dallas, TX. The vice president of the hotel desire to replace the antiquated computer terminals at the registration desk with attractive state-of-the-art flat panel displays. The new displays would take less space, would consume less power than the old computer terminals, and would provide additional security since they can only be viewed from a restrictive angle. The new computer displays would not require any new wiring. The chef of the hotel believes the found could better be used to purchase a new bulk freezer for the kitchen.
For each of the following, CLEARLY indicate whether it is a (a) differential cost, (b) opportunity cost, or (c) sunk costs. Be sure your answers are clearly formatted.
a. cost of electricity to run the terminals
b. cost of the old computer terminals
c. cost of existing registration desk wiring
d. costs of maintaining the old computer terminals
e. wages of registration desk personnel
f. rent on the space occupied by the registration desk
g. cost of removing the old computer terminal
h. benefits from a new freezer