The Loss in Sales of an Existing Product Is a Sink

Multiple Choice

The loss in sales of an existing product is a sink cost when assessing the cost of a new product if:

A) A competitor's product would have reduced the sales of the existing product.
B) The existing product is more costly to produce than the new product.
C) The existing product is less costly to produce than the new product
D) The loss in any sales should never be considered a sunk cost.
E) A competitor's product is not expected to create a loss in sales of the existing product.