Question: Kate's Store is considering three mutually exclusive options for the use of the new addition to her facility. Kate can either expand the women's clothing

Kate's Store is considering three mutually exclusive options for the use of the new addition to her facility. Kate can either expand the women's clothing section, add a new footwear section or expand into home linens. She estimates annual profits of either $120 000 from the clothing, $104 000 from the footwear, or $98 000 from the home linens section, should that section be chosen for the expansion. What is the opportunity cost of her most profitable option?

$98 000

$104 000

$120 000

$202 000

$224 000

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