Answer: Third option is correct.
Explanation:
Since we have given that
Number of words the manual contains= 16000
Number of words typed by a clerk in one hour and 20 minutes = 4160
According to question we will use "Unitary method":
Number of hours is need to type 4160 words is given by

Number of hours is needed to type 1 word is given by

Number of hours is needed to type 16000 words is given by

Now, the clerk cost per hour = $17.65
So, the manual cost that will take to recreate by the firm is given by

Hence, Third option is correct.