If depreciation is a sunk cost what if if you are able to sell the equipment if you decided to outsource production Am i right to assume it is relevant because you would no longer incur it anymore?

If depreciation is a sunk cost what if if you are able to sell the equipment if you decided to outsource production Am i right to assume it is relevant because you would no longer incur it anymore?
You can do it and now the cost turns from Fixed cost to a variable cost. You only pay for how much you produce. Earlier, if you had a machine costing 10000 and a you decided to deprecate it 10% over 10 years (straight line), your annual fixed cost is 1000. If you produce 100 items, the fixed cost per unit it 10. if you produce 1000 item, the FC per unit is 1.
Now, if you outsource at a cost of 5 per unit the cost per unit will be same irrespective of how many units you produce. You make the decision based on your expected production and many other factors.