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Melita Sailboats Company manufactures 10 luxury yachts per month. A compact media center is included in each yacht. Melita Sailboats manufactures the media center in-house

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Melita Sailboats Company manufactures 10 luxury yachts per month. A compact media center is included in each yacht. Melita Sailboats 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 $38,000 per month. If it outsources the media centers, fixed costs could be reduced by half, and the vacant facilities could be rented out to earn $4,000 per month of rental income. What is the maximum contract cost that Melita should pay for outsourcing? O A. $2,180 per unit B. $2,580 per unit O C. $280 per unit OD. $3,800 per unit

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