Sprite company must decide on a make or buy decision. A supplier has offered to make the product at the same quality. Fixed marketing costs would be unaffected but variable marketing costs would be reduced by 30%. What is the maximum amount per unit that Sprite can pay the supplier without decreasing its operating income?

elow are Sprite company's monthly unit costs to manufacture and sell a produc Unit Costs Variable Cost (in P) Fixed Costs (in P) Direct materials 2 Direct labor 2.4 Indirect Manufacturing 1.6 1 Marketing 2.5 1.5