Bonita Industries has the following costs when producing 100000 units:

Variable costs $600000

Fixed costs 900000

An outside supplier is interested in producing the item for Bonita. If the item is produced outside, Sandusky could use the released production facilities to make another item that would generate $230000 of net income. At what unit price would Bonita accept the outside suppliers offer if Bonita wanted to increase net income by $200000?

Entry field with incorrect answer

$8.30

$6.30

$5.70

$10.30