Suppose Walker Publishing Company is considering bringing out a new finance text whose projected revenues include some revenues that will be taken away from another of Walker's books. The lost sales on the older book are a sunk cost and as such should not be considered in the analysis for the new book.

a. True

b. False

Question

Business

Lance Long

20 April, 23:37

Suppose Walker Publishing Company is considering bringing out a new finance text whose projected revenues include some revenues that will be taken away from another of Walker's books. The lost sales on the older book are a sunk cost and as such should not be considered in the analysis for the new book.

a. True

b. False

+5

Answers (1)

Know the Answer?

Jordyn Foley · Answer 1

B, False

Explanation:

If revenues from the new projected book will include revenues from an older book then the lost sales from the older book must also be considered for the new book in order to balance records appropriately.

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