Wholesome Company Paid $130,000 for a Machine Used to Mill

Multiple Choice

Wholesome Company paid $130,000 for a machine used to mill oats. The annual contribution margin from oat sales is $60,000. The machine could be sold for $90,000. The opportunity cost of producing wheat flour is:

A) $90,000
B) $130,000
C) $30,000
D) $60,000