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Fruit Boat Company manufactures 10 fruit themed boats per month. A navigation system is included...

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Accounting

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Fruit Boat Company manufactures 10 fruit themed boats per month. A navigation system is included in each boat. Fruit Boat Company manufactures the navigation system in-house but is considering the possibility of outsourcing this function. At present, the variable cost per unit is $300, and the fixed costs are $40,000 per month. If it outsources the navigation system, fixed costs could be reduced by half, and the vacant facilities could be rented out to earn $1000 per month of rental income. What is the maximum contract cost that Fruit Boat Company should pay for outsourcing? any cost lower than $2400 per unit any cost lower than $2300 per unit any cost lower than $300 per unit any cost lower than $4000 per unit

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