Flavor Enterprises Has Been Approached About Providing a New Service

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.