A Corporation Has Been Steadily Losing Money on One of Its

A corporation has been steadily losing money on one of its product lines,Wally's Widgets.The firm produces Wally's Widgets in a factory that cost $20 million to build 10 years ago.The firm is now considering an offer to buy that factory for $15 million.Which of the following statements about the decision to sell or not to sell is correct?

A) The firm should turn down the purchase offer because the factory cost more than $15 million to build.
B) The $20 million spent on the factory is a sunk cost;that cost should not affect the decision.
C) The $20 million spent on the factory is an implicit cost,which should be included in the decision.
D) The firm should sell the factory only if it can reduce its costs elsewhere by $5 million.