Seven Seas Sailboats Company Manufactures 100 Luxury Yachts Per Month

Seven Seas Sailboats Company manufactures 100 luxury yachts per month.A compact media center is included in each yacht.Seven Seas Sailboats manufactures the media center in-house.The company is considering the possibility of outsourcing the production of media center in order to close down some of its facilities and reduce administrative costs.At present,the variable cost per unit is $275 and fixed costs are $39,000 per month.Assuming if the company outsources the production of media center,and the fixed costs could be eliminated entirely,at what contract rate would outsourcing pay off for Seven Seas? (Round to nearest whole dollar.)

A) at any rate lower than $844 per unit
B) at any rate lower than $796 per unit
C) at any rate lower than $775 per unit
D) at any rate lower than $665 per unit