Imagine that you own your own business, or you are the manager of a company

My business is textile manufacturing. We utilize crude materials as fabric of different structures like cotton, fleece and so forth and assembling prepared to destroy textiles of them in the manufacturing plant.

The fixed costs of my business i.e costs that don't change with output are the lease of the industrial facility, the fixed compensation segment of labor, least power charge.

The variable costs of my business i.e costs that do change with output are the costs of crude materials (essential fabric) procuerd, the time-based compensations of the labor, cost of power utilized in the creation cycle

The sunk costs are those that have just been paid for and doesn't influence the choice to create. One such costs is the yearly lease of the processing plant previously paid. Presently, the creation should possibly occur if the income is sufficient to take care of the extra factor expense of creation and the lease previously paid doesn't make a difference in the choice to deliver further. Hence, it is a sunk cost.