You’ve decided to open up a small coffee stand on the corner. Aspart of this stand you had to invest

You’ve decided to open up a small coffee stand on the corner. Aspart of this stand you had to invest $80 in a nonrefundable licenselast year. The cost per cup is expected to be $0.25. During thefirst week you find that business is booming and you are able tohire a few extra people, but due to the small structure you areworking from you can’t expand to serve all of the people until alarger structure can be made and installed. In the above situation,what money would you consider “sunk” or non-refundable? What costsare variable or can be adjusted quickly in the short run? Whatcosts are relatively fixed and are difficult to adjust?