Sanders Inc. has the following costs when producing 100,000 units:

Variable costs $600,000

Fixed costs 900,000

An outside supplier is interested in producing the item for Sanders. If the item is produced outside, Sanders could use the released production facilities to make another item that would generate $150,000 of net income. At what unit price would Sanders accept the outside suppliers offer if Sanders wanted to increase net income by $120,000?

a 5.70

b 8.70

c 6.30

d 7.50