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 $275, and the fixed costs are $40,000 per month. The CEO, wishes to increase operating income by $4000. 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 O $27,500 O $11,500 O $7500 $4000