QUESTION 4[9 MARKS]BT & W has 400 watches that cost P150 each to manufacture. The...
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QUESTION MARKSBT & W has watches that cost P each to manufacture. The watches are out of fashionand cannot be sold in their current state. However, they can be redesigned at an additional cost ofP per watch and then sold for P each. Alternatively, the watches can be donated to charityfor a net financial benefit of tax reduction of the original production cost.Requireda Identify a sunk cost for BT & W Provide a reason for your answer marksb Identify a relevant cost Provide a reason for your answer marksc In your opinion which option should the company take? markd Calculate the opportunity cost associated with donating the watches marks
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