Exhibit 7-1 Talmont Products Has Dropped the Price Per Unit of Its

Multiple Choice

Exhibit 7-1
Talmont Products has dropped the price per unit of its smart phone product from $1,060 to $500.There are some units in work-in-process inventory that have costs of $600 per unit associated with them.Talmont could sell these units in their current state for $400.It will cost Talmont $40 to complete these units so that they can be sold for $500 each.
-Refer to Exhibit 7-1.Which of the following amounts is a sunk cost in this problem?

A) $1,060 per unit
B) $40 per unit
C) $600 per unit
D) $400 per unit
E) None of the answer choices is correct.