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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 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 Fixed costs Variable costs Total cost to produce 25,000 $41,000 $69,000 $110,000 Jackson Corporation can purchase the part from an outside supplier for $4.56 per unit. If they purchase from the outside supplier, 50% of the fixed costs would be avoided. If Jackson Corporation makes the part, how much will its operating income be? O A. $20,500 greater than if the company bought the part O B. $24,500 greater than if the company bought the part O C. $65,500 greater than if the company bought the part OD. $134,500 greater than if the company bought the part
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