Q8 HASF & Company produces cleaning kits for shotguns. The production capacity available will enable the firm to produce 50,000 kits annually. A projected income statement for next year shows

Sales460,000

Costs of goods sold296,000

Gross profit164,000

Selling and administrative expenses125,000

Net income39,000

Fixed manufacturing overhead costs 40% ofthe cost of goods sold. Regular selling price per unit is 10 A 10% sales commission is paid to sales representatives for each kit sold. The purchasing department of a large discount chain has offered to purchase 1500 kits at $6 each. Company sales manager's initial response is to refuse the offer because he concludes that the $6 price is below the firm's average costThe sales commission would not be paid on the special order.

What is the lowest price per unit the firm could accept if it wants to earn annual net income of 48,000 ( ignore sales commission )