Fruit Car Company manufactures 100 fruit themed cars per month. A compact media center is included in each car. Fruit Car Company manufactures the media center in-house but is considering the possibility of outsourcing this function. At present, the variable cost per unit is $280, and the fixed costs are $41,000 per month. The CEO, wishes to increase operating income by $5000. He has an offer from a foreign producer to provide the media centers at a contract cost of $350 per unit. The required savings in fixed costs in order to achieve his objective would be ________.

Group of answer choices

$5000

$28,000

$7000

$12,000