5.A car manufacturer sources the seats for its cars from a supplier for $1000 per seat. The seatdesign is complex, and the supplier has been having a hard time making seats according tothe manufacturer's specifications. Below are the percentages of defective seats in theshipments received by the car manufacturer in the last four months.MonthUnits DeliveredUnits Defective% DefectiveJanuary100025025February100030030March100025020April100020025Defective seats must be reworked, doubling their initial price. Because of this quality controlissue, the car manufacturer is considering bringing seat production in house. The carmanufacturer estimates the annual fixed cost $15 million and expects that they need 150,000seats. What must be the unite cost in house production to justify making seats in house?A.$1150 or lessB.$1200 or lessC.$1200 or moreD.$1250 or lessE.$1250 or more