What unit price would sandusky accept the outside supplier

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Sandusky Inc. has the following costs when producing 100,000 units:

Variable costs $600,000

Fixed costs 900,000

Problem 1: An outside supplier is interested in producing the item for Sandusky. If the item is produced outside, Sandusky could use the released production facilities to make another item that would generate $150,000 of net income. At what unit price would Sandusky accept the outside supplier's offer if Sandusky wanted to increase net income by $120,000?

Reference no: EM132667505

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