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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 25,000 Fixed costs $45,000 Variable costs $69.000 Total cost to produce $114,000 Jackson Corporation can purchase the part from an outside supplier for $4.72 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. $71,500 greater than if the company bought the part B. $140,500 greater than if the company bought the part C. $22,500 greater than if the company bought the part D. $26,500 greater than if the company bought the part
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