Sheridan Company incurred the following costs to produce $100000$ units:

Variable costs $$420000$

Fixed costs $,840000$

An outside supplier is interested in producing the item for Sheridan. If the item is produced outside, Sheridan could use the released production facilities to make another item that would generate $$160000$ of net income. No fixed costs are avoidable. At what unit price would Sheridan accept the outside supplier's offer if Sheridan wanted to increase net income by $$120000?$

$$3\mathrm{.}80$

$$7\mathrm{.}00$

$$4\mathrm{.}60$

$$5\mathrm{.}80$