Fruit Boat Company manufactures 100 fruit themed boats per month. A navigation system is included in each boat. Fruit Boat Company manufactures the navigation system in-house but is considering the possibility of outsourcing this function. At present, the variable cost per unit is $300, and the fixed costs are $40,000 per month. If it outsources the navigation system, fixed costs could be reduced by half, and the vacant facilities could be rented out to earn $4000 per month of rental income. What is the maximum contract cost that Fruit Boat Company should pay for outsourcing?

Group of answer choices

any cost lower than $540 per unit

any cost lower than $500 per unit

any cost lower than $300 per unit

any cost lower than $400 per unit