Hitchcock Industries has developed two new products but has only enough plant capacity to introduce one of these products this year. The company controller has gathered the following data to assist management in deciding which product should be selected for production.

Hitchcock's fixed overhead includes proportional rent and utilities, machinery depreciation, and supervisory salaries. Selling and administrative expenses are not allocated to products.

Cost per unit:                                  Power Drill   Power Saw

Raw materials                                    $22.00      $18.00

Machining at $12/hr.                                9.00         7.50

Assembly at $10/hr.                               15.00         5.00

Variable O/H at $8/hr.                             18.00         9.00

Fixed O/H at $4/hr.                                 9.00         4.50

Total unit cost:                                   $73.00      $44.00

Suggested selling price                           $88.98      $49.95

Actual research and development costs        $180,000     $95,000

Proposed advertising and promotion costs     $300,000    $250,000

The advertising and promotion costs for the product selected by Hitchcock will be

A. Discretionary costs.

B. Opportunity costs.

C. Committed costs.

D. Mixed costs.