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Denaro Pays $8,000 Per Month in Rent to Operate a Health

Question 137

Multiple Choice

Denaro pays $8,000 per month in rent to operate a health club in Memphis.He also pays $17,000 per month in wages,$3,000 per month in food and supplies,and $1,000 per month in insurance.All of his costs of production,except his insurance and rent,can change if he makes different decisions about his health club production.Denaro's monthly sunk costs equal:


A) $20,000.
B) $11,000.
C) $29,000.
D) $9,000.

Correct Answer:

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