Problem:
Jenson Computers has 850 computers that are no longer useful. The original cost was $600,000. The computers could be upgraded for $195,000 and sold for $728,000. Or, they could be sold as is for $100,000.
Required:
Question 1: What is their sunk cost?
Question 2: What is their opportunity cost if they sell it for $100,000?
Note: Provide support for your rationale.