Canada Sailboats Company Manufactures 10 Luxury Yachts Per Month

Canada Sailboats Company manufactures 10 luxury yachts per month.A compact media center is included in each yacht.Canada Sailboats manufactures the media center in-house but is considering the possibility of outsourcing this function.At present,the variable cost per unit is $270,and the fixed costs are $40,000 per month.Justin Blake,the CEO,wishes to increase operating income by $3,000.He has an offer from a foreign producer to provide the media centers at a contract cost of $325 per unit.The required saving in fixed cost in order to achieve his objective would be ________.

A) $3,000
B) $550
C) $3,550
D) $2,700