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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 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 Fixed costs Variable costs Total cost to produce 27,000 $40,000 $66,000 $106,000 Pollock Corporation can purchase the part from an outside supplier for $4.74 per unit. If they purchase from the outside supplier, 50% of the fixed costs would be avoided. If the company makes the part, how much will its operating income be? OA. $81.080 greater than if the company bought the part On. $41,360 greater than if the company bought the part OC $147,000 greater than if the company bought the part OD. $20,000 greater than if the company bought the part
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