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Kosnic Inc. has the following costs when producing 1 0 0 , 0 0 0 units. Variable costs $ 8 0 0 , 0 0

Kosnic Inc. has the following costs when producing 100,000 units.
Variable costs $800,000
Fixed costs 1,000,000
An outside supplier is interested in producing the item for Kosnic. If the item is produced outside, Kosnic could use the released production facilities to make another product that would generate $250,000 of net income. At what unit price would Kosnic accept the outside supplier's offer if Kosnic wanted to increase net income by $200,000?
$8.50
$8.00
$10.50
$6.30
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