Flavor Enterprises Has Been Approached About Providing a New Service

question 11

Multiple Choice

Flavor Enterprises has been approached about providing a new service to its clients. The company will bill clients $140 per hour; the related hourly variable and fixed operating costs will be $75 and $18, respectively. If all employees are currently working at full capacity on other client matters, the per-hour opportunity cost of being unable to provide this new service is:

• A) $0.
• B) $47.
• C) $65.
• D) $93.
• E) $140.