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The incremental costs are purchase price 3000 and cash

	Machine A	Machine B	Incremental Cost (B - A)
Purchase price	$25,000	$28,000	$3,000
Cash Operating costs	5,000	4,000	(500)
Depreciation of old equip	1,500	1,500	0

The incremental costs are purchase price ($3,000) and cash operating costs ($500). Here is a question for you based on the information in the table. What are the sunk costs, if any, in this situation?

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Accounting Basics: The incremental costs are purchase price 3000 and cash

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