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Sundown Sunglass Company currently manufactures the frames used in its sunglasses. Here are Sundown's most recent data regarding this key component part: 10,000 $300,000 $165,000

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Sundown Sunglass Company currently manufactures the frames used in its sunglasses. Here are Sundown's most recent data regarding this key component part: 10,000 $300,000 $165,000 of frames produced annually Fixed production costs Variable production costs in lieu of manufacturing the frames in-house, Sundown can purchase the frames from an outside supplier. If Sundown purchases the frames from the outside supplier, it would avoid 35% of the fixed production costs. To maintain its current level of operating income, what is the highest price Sundown can pay the outside supplier for each frame? $10.50 $27.00 $1650 $36.50 None of the above

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