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Part P 4 0 is a part used in the production of dehumidifiers at Pollock Corporation. The following costs and data relate to the production

Part P40 is a part used in the production of dehumidifiers at Pollock Corporation. The following costs and data relate to the production of Part P40:
Number of parts produced annually
24,000
Fixed costs
$42,000
Variable costs
$68,000
Total cost to produce
$110,000
Pollock Corporation can purchase the part from an outside supplier for $4.53 per unit. If they purchase from the outside supplier, 50% of the fixed costs would be avoided. If the company buys the part, what is the most it can spend per unit so that operating income is equal to $100,000?(Round the final answer to the nearest cent.)
Question content area bottom
Part 1
A.
$3.29
B.
$1.24
C.
$4.17
D.
$2.42

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