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Part P40 is a part used in the production of air conditioners at Jackson Corporation. The following costs and data relate to the production of

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Part P40 is a part used in the production of air conditioners at Jackson Corporation. The following costs and data relate to the production of Part P40 Number of parts produced annually 26.000 Fixed costs $41,000 Variable costs $67.000 Total cost to produce $108,000 Jackson Corporation can purchase the part from an outside supplier for $4,50 per unit. If they purchase from the outside supplier 50% of the fored costs would be avoided. If Jackson Corporation buys the part, what is the most Jackson Corporation can spend per unit so that operating income is equal to 598,000? O A. $2.19 O B. $1.52 O C. $2.98 OD. $3.77

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