Action Products Is Deciding Whether to Outsource Production of a Certain

Action Products is deciding whether to outsource production of a certain component that is included in all of its products.It currently costs Action Products $0.95 to make each component in-house.If Action Products outsources,it can buy the component ready-made for $0.80 each.If Action Products outsources,it could shut down the production facilities it is currently using to manufacture the component,and save $10 000 a year in fixed costs.After analysing both options,Action Products decided to continue making the component in-house.In the analysis done,which of the following items would be considered an opportunity cost?

A) The difference between the fixed and variable costs to make the component in-house
B) The contract cost of $0.80 to buy from outside source
C) The savings of $10 000 per year in fixed costs
D) The difference between $0.95 and $0.80 per component