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 26,000 Fixed costs $40,000 $70,000 $110,000 Variable costs Total cost to produce Pollock Corporation can purchase the part from an outside supplier for $4.32 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. $20,000 greater than if the company bought the part B. $62,320 greater than if the company bought the part OC. $22,320 greater than if the company bought the part OD. $132,320 greater than if the company bought the part

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: Pollock Corporation can purchase the part from an outside supplier for $4.32 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? A. $20,000 greater than if the company bought the part B. $62,320 greater than if the company bought the part C. $22,320 greater than if the company bought the part D. $132,320 greater than if the company bought the part