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Tyreek is comparing the cost to produce footballs at four different locations, shown in the table below along with their cost structure. He estimates that

Tyreek is comparing the cost to produce footballs at four different locations, shown in the table below along with their cost structure. He estimates that demand will be 300,000 units next year and really wants to get back to Stillwater. By how much must he lower his direct material cost per unit in order to put Stillwater in a tie for the least expensive city? (Answers have been rounded to the nearest cent.)
Cost Data Stillwater Kansas City Miami Douglas
Fixed costs $500,000 $650,000 $600,000 $800,000
Direct material cost per unit $10.00 $11.00 $8.00 $7.00
Direct labor cost per unit $3.00 $3.00 $4.00 $5.00
Overhead per unit $1.10 $1.00 $1.50 $1.20
Transportation cost per unit $1.10 $0.80 $1.25 $0.90
a.8 cents
b.10 cents
c.12 cents
d.14 cents

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